African Development Bank invests US$15M in clean energy
THE African Development Bank Group has announced a follow-up equity investment of US$15 million in the Trade and Development Bank Group to support clean technology and low carbon projects in its member states such as Zambia.
The new capital, under the pioneering Class C Green+ shares and to be sourced from the Clean Technology Fund (link is external) (CTF), would also support the establishment of a project preparation facility to boost investment in clean technologies.
Class C Green+ shares enable TDB Group to leverage funds four times to support qualifying climate and SDG-aligned public and private sector transactions.
Commenting on the development, TDB Group President and Managing Director, Admassu Tadesse, said the new equity supported the bank’s green growth and climate action agenda and its drive to assist member states to achieve their Nationally Determined Contributions
“We are delighted to receive this investment into our risk capital by CTF through our strategic partner, the African Development Bank.
“We value the African
Development Bank’s pioneering role, which has generated much interest from other investors and catalysed this investment, which endeavours to bring about impact and attractive financial returns,” he said.
These investments will support TDB Group’s efforts to advance climate action and the Sustainable Development Goals (SDGs) in its member states, driving considerable long-term greenhouse gas emissions savings.
And the African Development Bank’s vice president for Power, Energy, Climate and Green Growth, Kevin Kariuki, congratulated TDB for the innovative class of shares with all capital raised through strategic partners to exclusively support climate action and sustainable development.
“This structure has a high replicability potential as it optimises the use of limited concessional funding and contributes to leveraging substantial resources from the private sector.
“We hope that the involvement of CTF will be instrumental in crowding-in the participation of additional investors into this class of shares and praise the establishment of the Project Preparation Facility unlocked by this investment,” Dr Kariuki said.