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Mirova backs solar provider ecoligo in Vietnam
Proceeds from US$10 million loan to boost mitigation efforts of C&I businesses
The Asset   14 Jan 2025

Paris-headquartered global asset management company Mirova, an affiliate of Natixis Investment Management, has lent Berlin-based, emerging market-focused, solar-as-a-solution provider ecoligo US$10 million to fuel its growth in Vietnam.

Ecoligo, which provides solar photovoltaic systems through power purchase agreements ( PPAs ) and lease-to-own models for on-grid commercial and industrial ( C&I ) clients, will use the proceeds from the loan to contribute to Sustainable Development Goal 13, which focuses on climate change mitigation.

The company focuses on a variety of sectors, including industrial and manufacturing enterprises, hotels and resorts, agricultural facilities, as well as private hospitals and universities. It has successfully raised €74 million ( US$75.6 million ) to date and currently manages a global portfolio of 100 megawatt-peak, comprising 200 projects.

The C&I solar energy sector in Vietnam is experiencing rapid expansion, according to a report by the Electricity and Renewables Energy Authority, with solar capacity rising from nearly 0% in 2018 to 21% in 2022.

Favourable domestic policies, such as the new direct PPA mechanism and the Energy Service Company model for rooftop solar systems, present opportunities for C&I businesses to reduce their energy costs and expand, while contributing to Vietnam’s goal of achieving carbon neutrality by 2050.

By providing industries with reliable and sustainable energy, ecoligo points out that it enables them to diversify their energy mix, which has traditionally been reliant on grid electricity powered by fossil fuels, thereby actively combating climate change and its associated impacts.

The energy solutions developed by the company are in alignment with Vietnam’s net-zero policy, which aims for carbon neutrality by 2050 by shifting the majority of its energy generation to wind and solar power.

“This partnership not only accelerates our mission to deliver clean and affordable energy solutions, but also exemplifies how collaboration can drive meaningful progress towards global climate goals,” says Martin Baart, ecoligo’s CEO. “Together, we are unlocking the potential for businesses to embrace solar power, actively contribute to a low-carbon future and pioneer the global energy transition.”

Priyanka Mehrotra, investment director, Mirova division of Natixis Investment Managers Singapore, adds: “We view ecoligo as a standout impact investment player in emerging markets. This investment perfectly aligns with our core strategy, which focuses on providing debt financing to clean energy companies that facilitate the transition to a low-carbon economy and enhance energy access in rapidly growing emerging markets.”