OPIC Board Approves $175 Million For Two Renewable Energy Investment Funds
June 19, 2012
(OPIC)
TPG and GEF to help bring latest technologies to reduce environmental impact in
Latin America, Southeast Asia & Sub-Saharan Africa
WASHINGTON, D.C. – The Board of Directors of the Overseas Private Investment
Corporation (OPIC), the U.S. Government's development finance institution,
approved $175 million in financing for two new investment funds that will bring
the latest renewable energy technologies to emerging markets in Latin America,
Southeast Asia and Sub-Saharan Africa, helping to lay the foundation for the
sector's growth in those regions for years to come.
The Board approved $125 million in financing for TPG Alternative & Renewable
Technologies Partners (TPG ART). TPG will invest in companies matching the best
renewable technologies from the United States and Europe to markets in Latin
America and Southeast Asia. TPG will also support the adoption of renewable
technologies that will have a lower environmental impact than the traditional
methods of energy generation used today.
"Taking the latest renewable energy technologies and applying them to emerging
markets is one of the great development challenges of the coming years. Be it
converting local biomass to high-value products, improving energy storage, or
making use of state-of-the-art building materials, the technologies invested in
by this fund will represent an important step toward meeting that challenge,"
said OPIC President and CEO Elizabeth Littlefield.
The Board also approved $50 million for the GEF Africa Growth Fund, which will
invest in environment-related energy infrastructure across Sub-Saharan Africa in
order to improve the efficiency of energy and agribusiness production in the
region. The fund will target investments in clean electricity generation; energy
management systems; distribution infrastructure; energy efficiency technologies
and services; and companies which promote sustainable management and harvesting
of timber and agriculture. The fund has a target capitalization of $150
million.
GEF's investments in clean and renewable forms of energy will help offset the
increased demand for fossil-fuel power generation in the subcontinent. Rapid
economic growth across Africa has resulted in a significant electricity shortage
that requires a dependence on costly diesel generators or improvised kerosene
lighting. Similarly, the expansion is prompting higher levels of food
consumption, which is expected to grow by 2.6 percent annually through 2018.
"Rising energy demand and food consumption in Sub-Saharan Africa makes the
connection between renewable energy and agribusiness critical to the
subcontinent's future," said Ms. Littlefield. "The GEF Africa Growth Fund will
make investments that accelerate the development of Africa's energy
infrastructure, particularly in industries that can raise agribusiness output to
meet consumption needs."
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TPG ART is managed by TPG , a leading global private investment firm founded in
1992 with $51.5 billion of assets under management and offices in Fort Worth,
San Francisco, Beijing, Chongqing, Hong Kong, Houston, London, Luxembourg,
Melbourne, Moscow, Mumbai, New York, Paris, São Paulo, Shanghai, Singapore and
Tokyo.
GEF Africa Growth Fund is managed by GEF Management Corporation, founded in 1990
with the objective of making investments in growing companies that make positive
contributions to the global environment, human health, and the quality of life.
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