An additional USD 20 m raised for energy loans in emerging markets
Development Bank of Austria increases commitment to climate fund
Zurich, 12 March 2019 —In a clear commitment to climate change mitigation, the Development Bank of Austria (OeEB) has increased its investment in the responsAbility-managed climate fund, adding USD 20 m across different share classes.
The responsAbility-managed climate fund is a public-private partnership founded in 2009 by the German Federal Ministry for the Environment, Nature Conservation, Building and Nuclear Safety (BMUB) and KfW Entwicklungsbank. It currently manages close to USD 670 m of committed capital from both public and private investors.
The fund targets to mitigate climate change by financing energy efficiency and renewable energy projects in emerging markets, either directly or via financial institutions. As per year-end 2018, it had investments across 25 emerging countries, providing green credit lines to 35 energy companies and financial institutions, which had used the funding to disburse 74,251 sub-loans for energy projects.
Besides financing energy projects, the fund strives to increase awareness for the commercial potential of climate financing and, through a dedicated Technical Assistance facility, heavily invests in consulting local banks on green products. This ensures that both funding and awareness-raising activities trickle down through a capillary network of end-clients across developing countries.
OeEB has been an investor in the fund since 2013 and has now increased its commitment by USD 20 m, up 66% to a total of USD 50 m.
This increase in funding comes as a clear commitment to climate change mitigation and financing the SDGs. In 2016, the United Nations identified a need to mobilize USD 100 bn per year by 2020 to address the climate challenge in developing countries.
“OeEB’s main focus is to promote clean energy and energy efficiency in developing countries in order to improve access to energy and help mitigate climate change. The climate fund shares these goals which makes it an excellent partner for us. We are happy to continue to work together to create sustainable development and build a greener future,” said Sabine Gaber, member of OeEB’s executive board.
Speaking on behalf of responsAbility, Antoine Prédour, Head of Energy Debt, underlined: “This increase of funding is a clear expression of trust from an important investor who has witnessed our achievements in financing climate change mitigation over the past five years. There is a world of opportunities in the area, and we look forward to using them to mitigate climate change – together.”
Oesterreichische Entwicklungsbank AG (OeEB)
Verena Kastner, BA
verena.kastner [at] oe-eb.at
+43 1 533 12 00-2993
responsAbility Investments AG
ulli.janett [at] responsAbility.com
+41 44 403 06 33
About Oesterreichische Entwicklungsbank AG (OeEB) (www.oe-eb.at)
Oesterreichische Entwicklungsbank AG (OeEB) has been operating as the Development Bank of Austria since March 2008. It specialises in the provision of long-term finance for the implementation of private sector projects in developing countries which create sustainable development. Additionally, OeEB provides technical assistance, which can be used to enhance the developmental impact of projects.
Über responsAbility Investments AG (www.responsability.com)
A leading asset manager for impact investments in emerging economies, responsAbility manages USD 3 bn of assets through a variety of investment vehicles that provide private debt and private equity to some 540 companies with inclusive business models across 90 countries. Founded in 2003, the company is headquartered in Zurich, Switzerland, and has local offices in Bangkok, Geneva, Hong Kong, Lima, Luxembourg, Mumbai, Nairobi, Oslo and Paris.