LHGP-managed green debt fund wins more commitments

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The AfricaGoGreen Fund, a debt fund managed by LHGP Asset Management which was set up early last year, announced it has secured new equity commitments from the African Development Bank (AfDB), the Bank’s Sustainable Energy Fund for Africa (SEFA), and the Nordic Development Fund (NDF). In total, the three organizations are investing $31.5 million into the fund which will catalyze and invest debt into private companies and projects developing and operating energy-efficient technologies and business models.

Of the $31.5 million, AfDB and SEFA are committing $20 million to the fund with the NDF investing the balance. At its launch, the AfricaGoGreen Fund (AGGF) was capitalized with €45 million (or about $28 million at today’s rates) to provide financing to businesses helping to decarbonize economies in Africa and accelerating their transition to renewable energy. According to Kevin Kariuki, AfDB’s Vice President for Power, Energy, Climate, and Green Growth, the AfricaGoGreen Fund will finance emerging projects and businesses in areas such as industrial appliances, electric mobility, and green buildings.

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