South Africa-based investment manager Metier has successfully reached a first close at US$113mn for its second infrastructure fund. Metier’s Sustainable Capital International Fund II is the Johannesburg-based private equity manager’s fourth investment fund, alongside its two existing growth capital initiatives and their first infrastructure fund.
Among the first investors to acquire final approval from its Investment Committee, Proparco has made an initial commitment of USD 10 million to the fund. In order to reach this first close, the fund also secured commitments from several other European Development Finance Institutions (DFIs).
Metier Sustainable Capital International Fund II is targeting a final close above US$150mn for investment into renewable energy, resource efficiency and energy efficiency projects and platforms across Africa, which will make significant direct contributions to both the strengthening of the private sector and climate action in Africa. From the near-term pipeline alone, it is estimated that the investments will drive the creation of 1,700 jobs and the reduction of CO2eq emissions by more than 220 000 tons annually, and will allow around 390,000 people to gain improved access to green energy in Kenya and Uganda. This fund investment hence contributes to four of the SDGs: n°7 - Affordable and Clean energy, n°9 - Industry, Innovation and Infrastructure, n°13 - Climate Action, and n°8 - Decent work and economic growth.
Proparco played an instrumental role in ensuring the full alignment of the fund strategy and investment decision-making process of the fund manager with the Paris climate agreement.
This is the AFD Group’s second transaction with Metier. In 2016, the AFD Group invested alongside Averroes in Metier’s second growth capital fund via FISEA, the Investment and Support Fund for Businesses in Africa, owned by the AFD and advised by Proparco.