UK Climate Investments (“UKCI”) today announced a planned R500 million (£28 million) cornerstone investment in a dedicated African renewable energy yieldco, Revego Africa Energy Limited.
Managed by a newly incorporated majority black-owned fund manager, the investment vehicle will seek to acquire equity in operational renewable energy projects across sub-Saharan Africa. In a region where energy poverty is a major inhibitor of economic development, the investment vehicle aims to accelerate the installation of new clean generation capacity by helping developers to unlock and recycle capital in established green energy projects.
With an intention to seek a listing on the Johannesburg Stock Exchange in the first half of 2019, the investment vehicle aims to demonstrate the investment potential of the region’s renewable energy sector. The targeted initial listing size of the investment vehicle is approximately R2 billion. The new vehicle is expected to generate significant interest from the institutional investment.
Claire Perry, UK Energy and Clean Growth Minister said:
At home we’re world leaders in cutting emissions while growing our economy and abroad we’re sharing our expertise to unlock low carbon investments to help countries tackle and adapt to climate change.
Strong climate action needs cooperation from the public and private sectors and this £28 million project is a great example of government action spurring on private investment in clean innovation, using our established track record in green finance to provide communities all over the world with reliable, clean power."
Richard Abel, Managing Director of UKCI said:
More than half of the world’s population currently living without access to electricity are in sub-Saharan Africa. By helping to facilitate the recycling of development capital into new renewable energy projects, this green finance initiative represents an exciting opportunity to accelerate the deployment of clean generation capacity for the region."
Harriet Baldwin, UK Minister of State for Africa said:
The UK is a world leader in tackling threats to our natural environment. Since 2011, UK climate finance has helped over 47 million people to cope with the effects of climate change, and provided 17 million people with improved access to clean energy.
Africa is home to some of the fastest growing economies in the world. The partnership between UK Climate Investments and Investec, which will unlock capital in established green energy projects, is a great example of the UK private sector working to attract green finance investors to help realise the potential of African economies, while tackling climate change."
Access to a source of reliable and affordable energy is a critical enabler of poverty alleviation. In sub-Saharan Africa, where only one in three people have access to electricity, the build-out of renewable energy infrastructure is critical for sustainable economic development and the creation of communities more resilient to the challenges posed by climate change.
Investec Bank Limited (“Investec”), a founding shareholder of Revego Fund Managers (Pty) Ltd, the manager of the investment vehicle, has also confirmed a conditional commitment of R500 million to act as a cornerstone investor. Both UKCI and Investec’s commitments will realise once the investment vehicle is listed.
UKCI is a joint venture between the Green Investment Group and the UK Government’s Department for Business, Energy and Industrial Strategy, which aims to help the world’s developing economies tackle climate change and promote cleaner, greener growth. UKCI is managed by Macquarie Infrastructure and Real Assets, the world’s largest infrastructure fund manager.
Tel: +44 20 3037 4014
About UK Climate Investments
UKCI is a £200 million pilot investment programme mandated to invest in India and sub-Saharan Africa. It targets transformational green energy investments where UKCI capital can mobilise additional private sector capital on a sustainable basis to promote cleaner, greener growth in these developing economies. UK Climate Investments LLP (UKCI) is a joint venture between the Green Investment Group and the UK Government’s Department for Business, Energy and Industrial Strategy.
About Macquarie Infrastructure and Real Assets
More than 20 years ago Macquarie Infrastructure and Real Assets (MIRA) pioneered investment in a new asset class for institutional investors – infrastructure.
Today we combine two decades of experience and expertise to identify and unlock investment opportunities in the assets that people use every day – extending beyond infrastructure to real estate, agriculture and energy.
As at 30 September 2018, MIRA has assets under management of more than €111.4 billion invested in 148 portfolio businesses, ~400 properties and 4.5m hectares of farmland. MIRA is a division of Macquarie Asset Management, the asset management arm of Macquarie Group, a diversified financial group providing clients with asset management, banking, advisory and risk and capital solutions across debt, equity and commodities.
Investec is an international specialist bank and asset manager that provides a diverse range of financial products and services to a niche client base in three principal markets, the United Kingdom and Europe, South Africa and Asia/Australia, as well as certain other countries. The group was established in 1974 and currently has approximately 10,100 employees.
Investec focuses on delivering distinctive profitable solutions for its clients in three core areas of activity namely, Asset Management, Wealth & Investment and Specialist Banking.
In July 2002 the Investec group implemented a dual listed company structure with listings on the London and Johannesburg Stock Exchanges.