US giant lends SA Development Bank billions for green projects
Pacific Investment Management Co (Pimco) has agreed to lend a South African State Development Bank $20 million, the first deal in a United Nations (UN) programme to fund green energy in Africa.
The debt securities from Pimco, and United States investment group that manages $2.2 trillion in assets, will be used to refinance debt that South Africa’s Development Bank of Southern Africa has in renewable projects, with the funding to go toward investing in additional capacity.
There is "ongoing interest from our stakeholders in well structured products that also achieve tangible progress for sustainable energy development in Africa," Scott Mather, Pimco’s Chief Investment Officer said in a statement on Tuesday.
The UN Economic Commission for Africa is running the program, which aims to see the construction of 10 000 megawatts of green energy generation capacity.
Leaders in Africa, the world’s poorest continent, are pushing for funding to transition away from the fossil fuels their economies already use and to build the clean energy they need to power industrialization plans.