In brief: MUFG chooses manager for $1.5bn impact platform

Climate Fund Managers has been selected to manage the blended credit platform, with Pollination appointed strategic adviser.

Dutch blended finance investment firm Climate Fund Managers (CFM) has been selected as the fund manager for Gaia, a blended finance credit project led by Japanese mega-bank Mitsubishi UFJ Financial Group and development bank FinDev Canada, according to a press release.

Gaia was announced earlier this year. It is looking to raise $1.485 billion to invest in climate mitigation and adaptation projects in the Global South (which includes Africa, Asia and Latin America). Green Climate Fund, a vehicle founded by the UN Framework Convention on Climate Change to finance projects in emerging markets, approved a $150 million commitment in October. MUFG and FinDev Canada plan to co-invest around $440 million, per the statement. Pollination has been appointed as strategic adviser to CFM.

CFM currently manages two emerging market infrastructure funds focused on climate change: Climate Investor One, a $850 million fund focused on renewable energy, which closed in 2019; and Climate Investor Two, which launched in 2020 and is seeking $1 billion to invest in water, sanitation and oceans infrastructure.