Ashurst advises long standing client JBIC on BlackRock-sponsored Climate Finance Partnership Fund
19 October 2021
This alternative investment fund aims to address the impacts of climate change by investing in wind and solar energy and assets that support the delivery of renewable power, including transmission, energy storage and distribution, and electrified transport infrastructure. It has a strong, underlying public policy objective to reduce climate change by decreasing grid intensity through renewables investment in the emerging world. Energy is the dominant contributor to climate change, accounting for around 60% of total global greenhouse gas emissions according to research cited by BlackRock.
BlackRock has partnered with JBIC and a select group of other like-minded "Catalytic Partners" to catalyse broader institutional investment across official development assistance eligible emerging markets in Asia, Latin America and Africa. The Fund will provide investors access to a globally diversified portfolio of renewable power assets in developing countries seeking to deliver positive environmental and social impact and attractive total returns. It will target measurable impact aligned with the UN Sustainable Development Goals and plans to scale-up its impact through an innovative capital structure whereby for every US$1 of capital contributed by JBIC and other Catalytic Partners, BlackRock will aim to raise an additional US$4 of institutional capital, leading to much needed investment from new capital providers.
"We're grateful both for the opportunity to continue our long-term relationship with JBIC and to represent them on this milestone commitment to address climate change through JBIC's commitment to the Climate Finance Partnership Fund," said partner Dean Moroz. "The unique capital structure of the Fund aims to increase the financial impact of JBIC's anchor commitment to four times the face value of JBIC's commitment amount, and will undoubtedly spur much needed investment from new capital providers into this important segment of the market."
The transaction was led by partner Dean Moroz, with the support from offices across the firm's global network including Hong Kong, Tokyo, Singapore, New York, London and Luxembourg.
