Finnfund has announced the sale of its stake in Lake Turkana Wind Power to BlackRock. The Finnish DFI’s announcement comes a day after a press report stated that CFP Holdings had bought a 31.25% stake in LTWP. The new equity owner is Climate Finance Partnership, a public private finance vehicle that is managed by BlackRock Alternatives. This is the first investment made by the fund.
We are excited for CFP’s first investment to be in Kenya, one of Africa’s fastest-growing economies, and we look forward to working with our partners in the region to source future developments that not only capitalize on the historic investment opportunity presented by the energy transition, but also contribute to local economies.
DAVID GIORDANO, GLOBAL HEAD OF CLIMATE INFRASTRUCTURE AT BLACKROCK ALTERNATIVES
The development finance institution has been a shareholder in the wind farm since 2014 when construction first began and it was the biggest equity investment made by Finnfund at the time of the commitment.
The agreement has been signed and the deal is expected to close during Q2 2023.
Climate Finance Partnership is a partnership between BlackRock, AfD (Proparco), KfW, Japan’s JBIC and impact organisations based in the US. So far, it has secured USD 673mn in commitments from governments, philanthropies and institutional investors. Its oversubscribed fundraise has surpassed an initial USD 500mn target. The fund plans to invest at least 25% of its AUM in Africa.