The UN Green Climate Fund (GCF) has committed US$253 million to the Africa Finance Corporation Infrastructure Climate Resilient Fund (ICRF). The GCF is taking a junior first-loss US$240 million equity stake in ICRF, and is its largest equity investment in Africa to date. GCF has also committed a further US$13.7 million in grant funding to the ICRF. The ICRF, which has a target fund size of US$750 million, will invest in greenfield and brownfield climate adaptation infrastructure in Africa. Yannick Glemarec, GCF Executive Director, said: “ICRF is a pioneering fund that will catalyse the development of climate-resilient infrastructure across Africa. GCF’s first-loss anchor investment in ICRF will mobilise African pension funds and other private investors to invest in climate-resilient infrastructure as a new asset class in Africa. It will also serve as a model for local banks and financial institutions to engage in climate finance. I’m delighted that GCF is partnering with AFC on GCF’s largest equity investment in Africa to date.”
GCF Board #GCFB35 approved #adaptation project FP205 with @africa_finance to unlock the investment potential of climate-resilient infrastructure in 19 countries by mobilising blended finance and crowding in capital from the private sector. #climateaction https://t.co/g4tFWASkbE pic.twitter.com/TAESsIvtJh
— Green Climate Fund (@theGCF) March 15, 2023
