UK Climate Investments has committed £15m of follow-on funding to support Revego Africa Energy Limited grow its portfolio of operational renewables capacity in South Africa.
Working alongside Investec Bank as well as Eskom Pension and Provident Fund, UK Climate Investments made an initial commitment of £25m earlier this year to help establish Africa’s first dedicated renewable energy yieldco, managed by majority black-owned fund manager Revego Fund Managers.
UK Climate Investment’s additional commitment will support the further growth of the yieldco as it scales up with a view to listing in the public market in due course and further reduce emissions.
Revego acquires equity in operational renewable energy plants across South Africa, in turn helping developers unlock and subsequently recycle capital into new electricity generation and capacity projects, whilst providing a green asset class for institutional investors.
Revego’s initial portfolio contains stakes in six projects across South Africa representing a combined installed capacity of 605MW.
With this additional funding and sustained backing from UK Climate Investments, Revego’s portfolio is expected to grow at pace over the coming 12-18 months as it pursues an “attractive pipeline” of investment opportunities across the region.
UK Climate Investments is a joint venture between Macquarie’s Green Investment Group and the UK Government’s Department for Business, Energy and Industrial Strategy, which invests UK International Climate Finance to help developing economies tackle climate change and promote clean, resilient and inclusive growth.
Richard Abel, managing director of UK Climate Investments, said: “UKCI is delighted to commit this increased level of support to Revego as it actively develops and grows its portfolio of high-quality assets under management.”