The AfricaGoGreen Fund (AGGF), managed by LHGP Asset Management, which invests in projects in West Africa that mitigate or reduce greenhouse gas emissions, said it has raised $87 million in funding from top financial organizations, including the International Finance Corporation (IFC), the African Development Bank (AfDB), the Nordic Development Fund (NDF), and the Sustainable Energy Fund for Africa (SEFA).

IFC provided $17 million in equity, which includes financing from the IDA20 Private Sector Window Blended Finance Facility. In addition to equity, IFC committed $30 million in debt to the fund, providing AGGF with long-term capital to complete the second close fundraise.

The African Development Bank, the Nordic Development Fund, and the Sustainable Energy Fund for Africa each invested $10 million equity in the fund. An additional $10 million in debt from Calvert Impact Capital was closed in December 2022.

The fund, which is targeting between $230 million and $250 million at final close, stands at $138 million, at the end of the fundraising round, LHGP said in a statement on Friday.

The funding will allow AGGF to broaden its financing for climate-friendly projects in Africa, including purchasing high-efficiency appliances and industrial equipment, retrofitting existing buildings and new green buildings, and installing rooftop solar and battery storage for residential, commercial, and industrial consumers.

(Writing by Brinda Darasha; editing by Seban Scaria)