The Mirova Gigaton Fund (MGF), launched in March 2023, provides a compelling case study on the role of blended finance in accelerating the clean energy transition and climate resilience in underserved markets. With a current $400 million target and a multi-layered capital structure – including super senior and senior debt, catalytic junior shares, and a portfolio guarantee – MGF is designed to address structural barriers to private capital mobilization in primarily Sub-Saharan Africa, to some extent in South-East Asia and Latin America, and thereby play a catalytic role in energy transition infrastructure investment. Its mandate focuses on distributed clean energy and climate innovations, with a strong focus on gender inclusivity. Focus sectors include solar for SMEs, e-mobility, mini-grids, agri-solar, and telco ESCOs.
The fund benefitted from a grant from Convergence Blended Finance to assist Mirova in addressing the primary challenges and innovations associated with this new blended finance initiative. This paper outlines the fund’s innovative financial design, early deployment achievements, and the challenges and lessons learned from its initial concept phase in summer 2021 through to its third close in January 2025. Key areas of focus include structuring for institutional investment, credit rating methodologies, and the provision of technical assistance.
