IFC proposes $100m commitment to Actis energy fund

The vehicle, Actis Energy 4, will invest in energy generation and distribution assets in emerging markets in Asia, Africa and Latin America. It has a target size of $2 billion and follows Actis' previous energy-focused funds. The latest of these, Actis Energy 3, closed at $1.15 billion in 2013.

IFC's investment will comprise $65 million from its own account and $35 million from IFC Asset Management, which comprises third-party capital managed IFC. IFC is already an investor in two of Actis' real estate funds, both of which focus on Africa. In addition to its financial commitment, IFC will provide other types of financing to investee companies and share insights on various issues with Actis.

"Actis is strongly positioned to navigate the complex regulatory environment in the Fund's target markets. IFC will leverage the World Bank Group's engagements in these markets to further facilitate Actis' engagement with relevant stakeholders for the Fund's investments," IFC said in a disclosure. The investment is intended to help meet IFC's goals for expansion of energy infrastructure in emerging markets, which will also boost business activity and job creation.

Actis has a number of energy investments worldwide, including Ostro Energy, an Indian renewable energy platform it created last year with a $230 million investment. Ostro is the firm's fifth energy platform and its first in Asia, after four in Latin America. The platform recently agreed to buy Prathamesh Solarfarms, a solar power project developed by Suzlon Energy.

IFC is also an active investor in Asia's energy space, having backed a number of projects across the region. Investees this year Vietnamese hydropower company Gia Lai Electricity and Bangladeshi independent power producer Summit Corporation.

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• Topics
• South Asia
• Southeast Asia
• Infrastructure
• Fundraising
• LPs
• GPs
• Asia
• IFC
• Actis Capital
• energy