2017: Strong growth takes GCPF beyond USD 500 m threshold
The Global Climate Partnership Fund (GCPF) has seen a 48% increase in funding commitments in 2017. Committed capital to investees crossed the USD 500 m threshold in early 2018, establishing the Fund as an important player in the climate finance sector open to private investors. Total expected lifetime CO2 reductions for all projects financed by the Fund since inception reached 10 m tonnes.
In 2017, funding commitments increased by 48 % or USD 200 m to a total of USD 616 m at year-end. Importantly, the share of private investors in the Fund doubled to reach over 30 % of total liabilities.
Over the same period, GCPF further diversified its investment portfolio, adding 9 partner institutions and bringing the number of investment markets up to 22 across four continents. At the end of 2017, the Fund’s 30 partner institutions had disbursed sub-loans amounting to USD 137 m, a 53 % increase over 2016.
Highlights of the year 2017
- 44% growth in invested volume
- Share of private investors doubled
- Substantial increase in Class A and Class B shares
- 10 m t of CO2 lifetime savings
- Increased geographical reach
- New financing structure employed
- Landmark transaction closed
- Technical Assistance boosted
The investment volume grew by 43 %, the highest year-on-year growth seen in the past five years. With USD 482 m invested volume at the end of 2017, the psychologically important USD 500 m threshold was crossed in early 2018, establishing GCPF as a successful major player in the climate finance sector open to private investors.
In line with the Fund’s mission to mitigate climate change, projects financed since inception contributed over 10 million t of CO2 lifetime savings. Projects financed in 2017 contributed 1.7 million t of CO2 to this total.
Claudia Arce, Chairperson of the Board of GCPF, explained: “This strong growth reflects the confidence of both public and private investors in GCPF’s ability to scale up climate financing in developing countries with the objective to effectively combat climate change while delivering attractive returns for investors.
CONTACT
Global Climate Partnership Fund S.A., SICAV-SIF
14, Boulevard Royal
L-2449 Luxembourg
