UK Climate Investments (UKCI) has announced a planned ZAR500 million (US$36.5 million) cornerstone investment in a dedicated African renewable energy yieldco, Revego Africa Energy Limited.

Managed by Revego Fund Managers (Pty) Ltd, a newly incorporated majority black-owned fund manager, the investment vehicle will seek to acquire equity in operational renewable energy projects across sub-Saharan Africa. The vehicle aims to accelerate the installation of new clean generation capacity by helping developers to unlock and recycle capital in established green energy projects.

Revego intends to seek a listing on the Johannesburg Stock Exchange in the first half of 2019. The targeted initial listing size of the investment vehicle is approximately ZAR2 billion (US$145.8 million).

Investec Bank Limited (Investec), a founding shareholder of Revego Fund Managers, has also confirmed a conditional commitment of ZAR500 million (US$36.5 million) to act as a cornerstone investor. Both UKCI and Investec’s commitments will realise once the investment vehicle is listed.

UKCI is a joint venture between the Green Investment Group and the UK Government’s Department for Business, Energy and Industrial Strategy. It is managed by Macquarie Infrastructure and Real Assets.