Mirova Gigaton Investment Vehicle [C142]

Multiregional

Mirova Gigaton Investment Vehicle

Ref. NDF C142

NDF grant: USD 15 million

Project Period: 2022 - 2037

Fund Manager: Mirova SunFunder

Objective

The Mirova Gigaton Investment Vehicle is a debt fund targeting energy access, clean energy transition and climate investments in underserved and emerging markets. The fund invests in the most relevant sectors in clean energy access in developing countries: solar home systems, mini-grids, agriculture clean energy, commercial and industrial distributed solar, telecom mast solarisation, e-mobility, and energy efficiency.

The Vehicle will continue fund manager’s, Mirova’s long track record in financing small and early-stage solar power energy access companies. The Vehicle is able to provide larger loans than the current lenders on average, and thereby support the further scale-up and the transition of the energy access sector to a new phase.

The main objectives of the fund are: (i) providing 10 million people with access to modern, affordable, and clean energy; (ii) reducing GHG emissions by 17 million tons of CO2e; (iii) creating 2.2 million new jobs; (iv) providing more than USD 1 billion debt financing and; (v) having 50% of the individual beneficiaries to be women and girls.

Expected Outcomes

The Mirova Gigaton Investment Vehicle will provide roughly USD 2-20 million loans with tenors of three to 12 years to fund working capital, asset financing and business expansion needs of early-stage and growth-stage companies in the distributed solar markets in developing countries.

• The fund will finance companies involved in

• solar-powered home appliances and solar home systems (SHS);

• mini-grids;

• productive use applications in agriculture and food supply chain;

• commercial and industrial (C&I) applications, including solarisation of telecom masts;

• e-mobility solutions;

• energy efficiency solutions; and

• non-energy climate solutions including adaptation and resilience.

The Vehicle’s Theory of Change (which you can see in the Project document below, Annex A) explains how the activities are intended to lead the specific targeted results and impacts. The intervention has three main activities; 1) tailored debt financing for companies in the target sectors; 2) business readiness support to investee / borrower companies; and 3) mobilisation of co-financing, including private sector investors.

Financing

The fund has a blended finance structure. NDF provides USD 15 million investment in the catalytic junior tranche of the Fund. The target size of Gigaton Empowerment Fund is USD 500 million.

NDF Contact

Michelle Voon, Program Manager (michelle.voon@ndf.int)