The African Development Bank Group (AfDB) has announced a follow-up equity investment of $15 million in the Trade and Development Bank Group’s (TDB Group) pioneering Class C Green+ shares to support clean technology and low carbon projects across member states of the TDB Group.
Funded by the Clean Technology Fund (CTF), the capital injection will also facilitate the establishment of a project preparation facility to bolster investment in clean technologies. The CTF, a component of the Climate Investment Funds, provides resources to developing countries to scale up low-carbon technologies with significant potential for long-term greenhouse gas emissions reduction.
TDB introduced the unique thematic equity instruments just over a year ago during COP27, receiving an initial investment of $15 million from the African Development Bank. The Class C Green+ shares allow TDB Group to leverage funds fourfold to support qualifying climate and Sustainable Development Goals (SDGs)-aligned transactions in both the public and private sectors.
2These investments are expected to drive considerable long-term greenhouse gas emissions savings, furthering TDB Group’s commitment to climate action and SDG advancement in its member states.
President and Managing Director of TDB Group, Admassu Tadesse, was delighted at receiving the investment from CTF through their strategic partner, the African Development Bank. He stressed the significance of the new equity in supporting TDB’s green growth and climate action agenda, as well as aiding member states in achieving their Nationally Determined Contributions.
AfDB’s Vice President for Power, Energy, Climate and Green Growth, Dr. Kevin Kariuki, also commended TDB for the innovative class of shares. He highlighted the potential replicability of this structure in optimising the use of limited concessional funding and attracting substantial resources from the private sector.
TDB Group’s Corporate Affairs and Investor Relations Executive, Mary Kamari, stated “while much more capital is needed to support climate action in Africa, we are also facing constraints in the availability of bankable projects, with many projects failing at feasibility and business-planning stages. In this regard, we also look forward to CTF’s technical assistance support to unlock new project opportunities in our region and scale-up our impact in the climate space.”
TDB’s Class C Green+ shares, building on the success of Class B shares launched a decade ago, aim to attract a broad range of impact investors, including institutional investors such as pension funds, insurance companies, sovereign wealth funds, and development finance institutions.
Source: APO Group.
By Derrick Kafui Deti – Digital Economy Magazine