Sanlam Alternative Investments (SAI), one of Africa’s largest and most experienced alternative investment managers, has announced a milestone transaction in global climate finance through the provision of an innovative Bridge Facility to support Climate Investor Two (CI2).
CI2 is a blended finance platform focused on water, sanitation and oceans infrastructure projects across emerging markets – sectors critical to climate resilience and sustainable development, particularly in Africa which faces some of the most acute climate-related risks globally.
Mark Moorhouse, executive head: infrastructure finance at SAI, says: “This transaction reflects our conviction that commercial success and climate resilience can, and must, go hand in hand. By backing CI2, we are enabling infrastructure that directly improves lives and meets climate challenges faced by emerging markets.”
A structure designed for impact
The Bridge Facility, which will later be refinanced through a long-term climate bond, is backed by a €205m guarantee from the European Commission. This guarantee unlocks an efficient pathway for fixed-income markets to access CI2’s portfolio of high-impact, climate-aligned assets. Under this mechanism, the bridge loan provided by SAI, backed by the guarantee from the European Commission, will be refinanced via a long-term climate bond, thus opening access for fixed-income investors to the fund’s underlying asset base.
For South Africa, the transaction is more than a global milestone. It signifies the country’s growing influence in shaping climate finance for emerging markets and demonstrates how African institutions can lead in delivering sustainable infrastructure. It reinforces SAI’s longstanding commitment to mobilising institutional investment towards infrastructure that delivers measurable environmental benefits and tangible improvements to communities across Africa.
“By enabling the Bridge Facility, we have directed capital into essential projects that build climate-resilient communities, enhance water security and support sustainable economic growth in regions most vulnerable to climate change,” says Moorhouse.
“We anticipate that this investment will attract further institutional capital, helping to strengthen South Africa’s leadership in climate- and adaptation-aligned financing. It also lays the foundation for a growing pipeline of infrastructure projects capable of delivering long-term financial returns alongside measurable social and environmental impact,” he adds. “Investors are increasingly seeking solutions that drive positive change while offering robust governance and disciplined risk management. This investment demonstrates our leadership in delivering on this dual mandate.”
African impact at scale
According to Climate Fund Managers, since its first close in 2021, CI2 has committed approximately $339m to 25 projects across emerging markets, including water supply and distribution in Vietnam and the Philippines, desalination in Thailand and Kenya, waste-to-energy platforms in Sierra Leone and South Africa, and the world’s largest debt-for-nature swap in Ecuador.
These investments highlight CI2’s focus on the full project life cycle, from development (via a dedicated Development Fund) through to construction (via a Construction Equity Fund), enabling risk-managed exposure and mobilising both public and private capital.
CI2 is now recorded as the largest climate-adaptation infrastructure fund dedicated to emerging markets, spanning Africa, Asia and Latin America.
Disclaimer: Sanlam Investments consists of authorised financial services providers in terms of FAIS and disclaimers can be viewed on https://www.sanlaminvestments.com/legal/disclaimer.
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