In the run-up to COP26, BlueOrchard continues to drive climate action in growth markets

BlueOrchard Finance Ltd (BlueOrchard), a leading impact investment manager and member of the Schroders Group, is pleased to announce the first closing of the BlueOrchard Sustainable Assets Fund (BOSAF or the Fund). The Fund will finance green infrastructure projects in emerging and frontier markets, focusing on projects in renewable energy, energy efficiency, and clean transportation. The Fund aims to make an impact at scale in regions where infrastructure and energy demand are growing fastest.

BOSAF focuses on climate change mitigation and the long-term economic development of emerging and frontier markets. The Fund will provide debt financing to projects with demonstrable social, environmental, and economic impact alongside attractive returns.

Infrastructure plays a vital role for social and economic development, but a significant gap remains for the financing of mid-sized projects in key emerging and frontier markets. BOSAF will work to close that gap with a focus on investments in projects which, despite not being massive in scale, have the potential to make an impact on communities for generations to come. The Fund’s clear and measurable impact targets are aligned with the UN’s Sustainable Development Goals (SDGs).

BOSAF is launching its first close with key support from the Schroders Group along with prominent European investors, including strong support from Nordic investors such as Finland’s Church Pension Fund and YLE, Pension Fund of Finnish Broadcasting Company. BOSAF is available to institutional investors across different jurisdictions.

The Fund will be managed by an experienced team, with a long track record and network in sustainable infrastructure investing across the emerging world. Combined with BlueOrchard’s 20-years of impact expertise, and local presence in emerging and frontier markets, the team is best positioned to source, execute, and deliver on the Fund’s objectives. The Fund’s impact and sustainability objectives will be overseen by BlueOrchard’s dedicated, in-house team of experts.

Felix Hermes, Head of Private Equity and Sustainable Infrastructure at BlueOrchard, said: “Around 75% of the UN SDGs investment gap is made up of critical infrastructure projects in growth markets. We are excited to contribute to closing this gap by leveraging BlueOrchard’s 20-year history as a leader in emerging markets impact finance. The strong support from Nordic investors in this endeavour is great news.

Carolina Minio-Paluello, Global Head of Product, Solution and Quant, Schroders, commented: “We have identified climate change as one of the main global threats and, as investors, we possess the ability to deliver change in the world by directing capital into areas that generate positive impacts. This fund, with its focus on providing debt financing to projects which aim to support social, environmental and economic impacts, allows us to deliver on this key objective.”

Ira van der Pals, CIO at Finland’s Church Pension Fund, said: “There is urgent need to accelerate the transition towards a low carbon economy. With a net zero target set by 2035, we have a strong focus on increasing investments in climate solutions. We are very pleased that we have found an experienced partner in BlueOrchard to address unmet climate finance needs in particularly those regions of the world that are the most vulnerable.

Topi Piela CEO of YLE, Pension Fund of Finnish Broadcasting Company, said: “We strongly believe in the concept of profit with a purpose. We are proud to partner up with the leader in this field, in order to invest with a measurable impact and to address crucial climate-related investment gaps in emerging markets.”


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