Climate Fund Managers (CFM) has announced the final close of its second blended finance facility, Climate Investor Two (CI2), securing a total of $1.065 billion, surpassing its initial $1 billion target. The milestone was achieved through $190 million in new commitments and a €205 million EFSD+ guarantee from the European Union, reinforcing investor confidence in climate adaptation and resilience initiatives.
Blended Finance for Global Impact
CI2 is designed to mobilize both public and private capital to co-develop and invest in critical infrastructure projects focused on water, waste, and oceans across emerging markets, including low-income countries in Africa, Asia, and Latin America. The fund’s blended finance structure enables investment across the full project lifecycle, from early-stage development to construction, through two key components:
- Development Fund: Provides concessional capital and technical expertise to reduce early-stage project risks.
- Construction Equity Fund: A tiered facility that accommodates diverse investor risk-return profiles during asset build-out.
Driving Climate Adaptation and Sustainability
Andrew Johnstone, CEO of CFM, emphasized the importance of adaptation in the climate finance landscape.
While climate mitigation remains critical in the race to end the climate crisis, adaptation must be an equal priority. Closing Climate Investor Two at more than $1 billion in a challenging environment is a major milestone that highlights investor appetite for adaptation and our ability to structure compelling opportunities in this space.
Johnstone also highlighted the role of strategic partners such as Sanlam Investments and the European Union in pioneering the Bridge-to-Bond mechanism, which expands access to climate finance for a broader group of investors.
Strategic Partnerships for Long-Term Impact
Mark Moorhouse, Executive Head of Infrastructure Finance at Sanlam Alternative Investments, praised the collaboration:
As a sustainability-driven asset manager, our purpose is to create long-term sustainability for investors, and for future generations. Our partnership with CFM since 2017 enables us to respond to the world’s urgent climate crisis, particularly in developing economies. We are proud to have facilitated this innovative and landmark financing model for the close of CI2.
Global Reach and Project Portfolio
Since its first close in 2021, Climate Investor Two has committed $339 million to 25 climate adaptation and mitigation projects across three continents. These include:
- Water supply and distribution projects in Vietnam and the Philippines
- Desalination facilities in Thailand and Kenya
- Waste-to-energy platforms in Sierra Leone, South Africa, and Thailand
- The world’s largest debt-for-nature swap in Ecuador, securing long-term funding for the Hermandad Marine Reserve and the Galápagos Islands
These projects reflect CI2’s commitment to sustainable infrastructure and its role in advancing climate resilience in vulnerable regions.
