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Tag: Anneliese Dodds

  • British International Investment to partner with City of London’s institutional investors to consolidate the UK’s position as global leader in climate finance

    British International Investment to partner with City of London’s institutional investors to consolidate the UK’s position as global leader in climate finance

    …New initiative will reduce risk for private institutions to inject capital to combat climate emergency.

    The City of London can consolidate its position as a global capital for climate finance by working with British International Investment (BII), the UK’s development finance institution and impact investor, in the battle to combat the climate emergency. 

    Last year, the UK Prime Minister, Keir Starmer, announced BII would manage a new £100 million Mobilisation Facility to boost the flow of private capital into emerging economies that are considered too risky by global investors.  

    Today, BII announced that up to £50 million of the facility has been ring-fenced for a groundbreaking new initiative. BII is partnering with Mercer, a global investment firm, to encourage the asset manager community to develop investment solutions, which will help to unlock private investment into climate related projects in emerging economies. It will also seek to address the gap between the risk appetite and return thresholds of institutional investors.  

    Emerging economies are expected to play a crucial role in global economic growth. They currently represent over 60 per cent of the world’s GDP and are projected to account for 74 per cent of global energy consumption by 2050. This creates investment opportunities in sectors like clean energy and infrastructure, offering potential for growth, diversification and impact. 

    Minister for Development, Anneliese Dodds welcomed the initiative: “Countries exposed to the climate crisis are facing extreme weather events which destabilise economies, hinder growth and displace people. Those countries need urgent access to finance to tackle and adapt to this crisis.

    “At the same time UK financial institutions are ideally placed to provide global leadership in climate finance and tap into these emerging markets, generating growth at home and providing much needed finance abroad.

    “By bringing together private and public expertise and capital, the UK is leading the world in mobilising the finance countries need to tackle the impacts of the climate crisis.”

    Asset Managers in the UK and globally, with a demonstratable track record in climate finance and interest in emerging economies, are invited to submit proposals to partner with BII. Proposals with a strong potential for accelerating private investment and which demonstrate large-scale climate impact will be granted access to concessional capital of up to £50 million from the facility. They will also have the opportunity to access non-concessional investment funding from BII. 

    Leslie Maasdorp, BII CEO said: “BII is the UK’s primary vehicle for delivering climate finance into our markets. But the scale of the climate emergency means we have to unlock the vast pools of capital that are held by private institutions. The partnership we have unveiled today is a truly innovative way of doing that.”

    Benoit Hudon, Mercer’s UK President and CEO said: “This initiative has the potential to encourage investment into new projects in emerging economies to support their economic development. Mercer will play a key role in identifying innovative asset manager proposals that support the energy transition and address some of the hesitancy institutional investors have about investing in emerging economies.” 

    For more information about the Mobilisation Facility initiative, please visit BII or Mercer websites.  

  • Absa Closes $150 million Finance Facility with British International Investment

    Absa Closes $150 million Finance Facility with British International Investment

     Absa has successfully secured a $150 million facility from British International Investment (BII) plc as part of its mission to help close the trade finance gap in Africa. BII is the UK’s Development Finance Institution (DFI) and impact investor, focused on providing patient capital to foster productive, sustainable, and inclusive economies. Absa, as the borrower in this transaction, will utilise the funds to support this objective, with a specific focus on the African continent.

    “Our unyielding commitment to the success of the continent continues to drive us to find solutions to serve our customers by addressing Africa’s trade finance gap, focusing on sustainable funding,” said Mosa Tshabalala, Head of FI Trade Sales (International), Risk Distribution, and Syndication at Absa CIB. “Our role as a Pan-African bank is to channel the funds to reach our client base across our chosen markets. We continue to forge partnerships with DFIs, insurance companies, other commercial banks (locally, regionally, and globally), ECAs, and institutional investors to drive market access and provide the funding necessary to support our customers’ growth ambitions.”

    Africa’s trade finance gap is estimated to be between $100 billion and $120 billion. By partnering with BII, Absa is making strides in advancing the efforts of the African Continental Free Trade Area (AfCFTA) agreement, which aims, among other objectives, to reduce the continent’s trade finance gap. In addition, this transaction enables Absa to extend liquidity to clients across various geographies and trade product sets that are in high demand.

    These funds are ringfenced for financing trade transactions, with a focus on sustainable funding. This includes, but is not limited to, supporting small and midsize enterprises (SMEs) founded by youth and women engaged in intra-African and global trade. 

    This aligns with Absa’s goal of concluding R100 billion in sustainability-related transactions by 2025.

    “Our extensive presence across the continent, combined with our global reach, enables us to facilitate the flow of capital and trade finance that African businesses need to scale and compete internationally. By leveraging our cross-border expertise and strategic partnerships, we are driving sustainable growth and creating new opportunities in emerging markets, contributing to the broader development of Africa’s economic ecosystem,” said Charles Russon, Interim Group Chief Executive Officer, Absa.   

    Absa’s long-standing partnership with BII reflects the depth of their relationship and shared vision for driving growth in emerging markets. Since 2019, the partnership has provided much-needed trade liquidity in countries such as Ghana, Nigeria, Kenya, Uganda, Tanzania, and Mozambique – supporting over $1 billion in trade volumes, including over the course of the COVID-19 pandemic, which severely strained trade liquidity in Africa.

    The UK’s Development Minister, Anneliese Dodds said, “I am happy to see BII support Absa through this important facility, which is part of a long-standing partnership to help fill Africa’s estimated $100bn to $120bn trade financing gap. Today’s signing demonstrates BII and Absa’s continued commitment to addressing that pressing challenge together, focusing on sustainable and inclusive economic growth.”

    Admir Imami, Director, Head of Trade & Supply Chain Finance, BII added “We are delighted to continue our partnership with Absa which is based on a shared ambition to progress inclusive and economic development, particularly for underserved groups including SMEs and women. The facility combines BII’s long history of support in Africa with Absa’s cross-border expertise, which will help to make trade finance more accessible to African businesses and improve the vital flow of essential goods including food.”

  • UK backing enables new Africa-focused climate fund to achieve US$200m first close

    UK backing enables new Africa-focused climate fund to achieve US$200m first close

    • The Helios Climate, Energy Access, and Resilience (CLEAR) Fund has achieved its first close.
    • CLEAR Fund has secured approximately US$200 million in anchor investment from eight leading institutions.
    • This includes investment from PIDG company InfraCo Africa, the Foreign, Commonwealth and Development Office (FCDO), and British International Investment (BII).
    • CLEAR aims to become the largest Africa-focused climate fund with a target size of US$400 million.

    Catalytic backing from the United Kingdom has enabled the Helios Climate, Energy Access, and Resilience (CLEAR) Fund to raise approximately US$200 million in its first close for investment in African businesses focused on climate mitigation and adaptation. The Fund, managed by Helios Investment Partners, intends to become the largest Africa-focused climate fund with a target size of US$400 million. 

    Following initial catalytic backing by PIDG company, InfraCo Africa and the UK’s FCDO, through the MOBILIST programme, a further six leading climate investors committed to anchor CLEAR’s first close. Among them are:

    • British International Investment, the UK’s development finance institution and impact investor
    • The European Investment Bank
    • The Emerging Markets Climate Action Fund, advised by EIB and managed by Allianz Global Investors
    • The Dutch Development Bank
    • The Swiss Investment Fund for Emerging Markets, advised by ResponsAbility Investments AG 

    Helios, which is the largest Africa-focused private investment firm, will begin investing the capital immediately. The Fund’s ambition is to support and scale African climate champions. It will focus on five key areas: 

    • Green energy solutions
    • Climate-smart agriculture & food
    • Green mobility and logistics
    • Recycling and resource efficiency
    • Digital and financial climate enablers 

    Research commissioned by MOBILIST shows that sub-Saharan Africa’s renewable energy market already represents a potential investment opportunity of $193 billion by 2031. Despite the scale of the opportunity, the International Renewable Energy Agency estimates that Africa currently attracts only 3% of global energy investment.  

    Anneliese Dodds, UK Minister for Development said: “This Government is determined to restore the UK’s reputation as a world leader on climate. We need to act now to avoid further environmental devastation that will fuel illegal migration, conflict, and famine across the world. The UK-supported CLEAR Fund is a first of its kind to invest in mid-sized African companies seeking to avoid and reduce carbon emissions, helping people to become more resilient and to adapt to the climate crisis. It is a great example of how UK innovation is helping to mobilise climate finance for Africa, enabling businesses on the continent to deliver climate-friendly solutions. It’s one more step towards realising our mission of a world free from poverty on a liveable planet.”

    Gilles Vaes, Chief Executive Officer at InfraCo Africa (PIDG), said: “Today’s announcement marks a key milestone for CLEAR – a Fund conceived by PIDG company InfraCo Africa, through its investment arm InfraCo Africa Investment Ltd, and Helios Investment Partners, with support from ThirdWay Partners and FCDO’s MOBILIST. It is also a watershed moment for African growth businesses – and the associated infrastructure – seeking to address the climate crisis. CLEAR will unlock much-needed access to finance and exit routes for climate entrepreneurs whilst giving investors comfort that their investments will generate the growth they expect and support global efforts to address climate change, in line with the PIDG strategy, which was launched in 2023.

    Christopher Chijiutomi, Managing Director and Head of Africa at BII, said: “We are delighted to once again partner with Helios Investment Partners to support the growth of African companies. As the UK’s development finance institution, this investment also reinforces BII’s commitment to supporting Africa’s green transition. Mobilising much-needed private capital into green sectors through this Fund will help to drive innovation and create new opportunities, contributing to a resilient and prosperous future for Africa.”

    Ross Ferguson, who leads the MOBILIST programme at the FCDO said: “Africa must overcome a significant climate financing gap to realise its climate transition and MOBILIST will act wherever there are opportunities to unlocking climate and development finance, including through faster reform of the global financial system. As such, FCDO, through MOBILIST, is proud to partner with Helios Investment Partners, one of Africa’s foremost private equity managers with deep expertise in creating secondary market liquidity for investors in Africa, including through Helios Towers and Vivo Energy. Joining MOBILIST and InfraCo Africa Investment Ltd, a powerful consortium of development finance practitioners is now anchoring this landmark fund to mobilise commercial capital toward addressing Africa’s climate mitigation and adaptation needs.