British International Investment (BII), the UK’s development finance institution, has announced the partial syndication of its mezzanine debt investment in Blueleaf Energy, a renewable energy platform owned by Macquarie Asset Management that aims to develop 5GW in renewable energy in India by 2030.
Last year, BII committed $75m (£56m) in financing to Blueleaf Energy to develop the platform’s pipeline and support India’s clean energy transition and move towards a low-carbon economy.
Now the Emerging Africa & Asia Infrastructure Fund (EAAIF), managed by investment firm Ninety One, has stepped in and will provide 50 per cent of the $75m mezzanine debt investment.
Read more: Commercial property distress emerging in mezzanine debt
By bringing in a like-minded global investor with an impact mandate, BII aims to leverage its initial capital by attracting private investment into sectors where financing gaps persist, the firm said. BII will retain its 50 per cent stake and continue to support Blueleaf’s growth, with the intention to mobilise further private capital over time.
“This transaction is a strong example of our originate-to-share approach under British Climate Partners, where we deploy our capital to unlock projects and then bring in institutional investors to scale them,” said Leslie Maasdorp, chief executive of BII. “By recycling our capital and partnering with impact investors like EAAIF, which is managed by Ninety One, we can accelerate the build-out of clean energy infrastructure while maximising our impact.”
Earlier this year, BII launched British Climate Partners, a £1.1bn initiative to support investments that reduce emissions in countries with coal-dependent energy systems, such as India.
Read more: BII and BlueOrchard launch $250m climate fund for insurers
EAAIF is a Private Infrastructure Development Group company with a focus on financing climate-resilient infrastructure that accelerates decarbonisation while supporting sustainable economic development. It has more than two decades of experience mobilising commercial and institutional capital for infrastructure projects across emerging markets.
Combined with BII’s sector expertise and local presence, it will support Blueleaf Energy’s continued expansion and help attract further private investment into climate infrastructure.
“Mobilising capital at scale is essential to accelerating the energy transition in emerging markets,” said Hendrik du Toit, founder and chief executive of Ninety One. “This transaction demonstrates how development finance institutions and private investors can work together to expand access to renewable energy infrastructure by bringing additional capital to projects with strong long-term fundamentals.”
