- The African Development Bank (AfDB) Group has announced a follow-up equity investment of $15 million in the TDB Group pioneering Class C Green+ shares.
- Admassu Tadesse, TDB Group President and Managing Director, said the new equity supports TDB’s green growth and climate action agenda.
The African Development Bank (AfDB) Group has announced a follow-up equity investment of $15 million in the Trade and Development Bank Group’s (TDB Group) pioneering Class C Green+ shares to support clean technology and low-carbon projects in its member states.
The new capital will come from the Clean Technology Fund (CTF) and will also support the establishment of a project preparation facility to boost investment in clean technologies. Also, the CTF, part of the Climate Investment Funds, provides resources to developing countries to scale up low-carbon technologies with significant potential for long-term greenhouse gas emissions savings.
These investments will support TDB Group’s efforts to advance climate action and the Sustainable Development Goals (SDGs) in its member states, driving considerable long-term greenhouse gas emissions savings.
Admassu Tadesse, TDB Group President and Managing Director, said the new equity supports TDB’s green growth and climate action agenda and the drive to assist member states in achieving their nationally determined contributions.
Furthermore, Dr Kevin Kariuki, the AfDB’s Vice President for Power, Energy, Climate and Green Growth, said, “This structure has a high replicability potential as it optimises the use of limited concessional funding and contributes to leveraging substantial resources from the private sector.”
Kariuki added that the involvement of CTF will be instrumental in crowding in the participation of additional investors into this class of shares and praised the establishment of the Project Preparation Facility unlocked by this investment.
TDB’s Class C Green+ shares are built on the success of Class B shares launched a decade ago to attract institutional investors – pension funds, insurance companies, sovereign wealth funds, development finance institutions, and others into TDB’s equity capital. They are open to investment by a broad range of impact investors.