SBK and Liberty will provide initial seed assets of R3 billion to the Fund, which will be managed by STANLIB. The long-term goal is to create easier access to the asset class to mobilise capital from institutional investors such as pension funds, development finance institutions (DFIs), banks, SA Fixed Income funds and the like to build this up to a $1 billion (R20 billion) pan-African investment vehicle. Achieving this goal will depend on investor appetite and investment opportunity.

“The initial seeding from SBK and Liberty ensures that this fund will be able to offer scale and diversity from the first day it is launched to the institutional market, which is unique in the alternative assets space,” said Kenny Fihla, SBK Corporate and Investment Banking CEO.

“We believe the Fund will be well received, as it will offer compelling risk-adjusted and smoothed returns with a predictable income stream.”

“Our commitment is to Africa’s growth, and we understand the critical role we must play in ensuring that our funding solutions meet the needs of our individual clients and economies. While there is much more to be done, we are proud of the progress we are making.”

The Fund will invest in a pool of energy transition and project loans with different maturities and in different technologies, such as renewable energy and related clean technologies, to enable Africa to fulfil its energy transition goals at scale. By doing so, this initiative will address various UN Sustainable Development Goals, including climate action, affordable and clean energy, sustainable cities and communities, and industry innovation and infrastructure.

STANLIB’s team of credit and infrastructure assets experts will manage the fund, applying their extensive experience in deploying credit to energy and impact opportunities, while providing investors with steady income and capital growth.

Standard Bank is a leading financial services group operating in Africa with a commitment to drive the continent’s growth and energy transition through offering diverse, innovative and compelling value propositions to clients and stakeholders.