Commercial, Finance, Solar  -  January 8, 2018

Church pension fund adds $17M to RE fund

The Church Pension Fund, a financial services organization serving the Episcopal Church, announced an investment of $17 million in the Social Investment Managers & Advisors Off-Grid Solar and Financial Access Senior Debt Fund I B.V.

The $75 million fund provides loans to institutions, distribution companies, and manufacturers in the off-grid solar sector located in sub-Saharan Africa and South Asia. 

"This investment will enable customers of solar energy to lease on an affordable installment basis and will impact the lives of more than 1 million people while reducing carbon dioxide by 4 million tons," said Asad Mahmood, CEO and Managing Partner of SIMA in a news release.

This investment is the second by CPF to focus on the off-grid solar sector, which has already invested in funds to provide financing to companies promoting clean technology in developing markets.

"Today more than 2.2 billion people across the world still live without reliable access to energy, and the underlying need for off-grid renewable energy still far outpaces the availability," says Roger Sayler, Executive Vice President and Chief Investment Officer of CPF. "This investment offers us the opportunity to provide funding for much-needed financing while also earning a competitive rate of return."

CPF currently has approximately $1 billion of invested or committed capital in socially responsible investments in 25 countries. CPF's socially responsible investing focuses on economically targeted initiatives such as urban redevelopment, affordable housing, sustainable agriculture, and microfinance, as well as environmentally responsible programs including sustainable forestry, clean technology, and green buildings.