The Climate Investment Funds’ (CIF) Capital Markets Mechanism (CCMM) has made its market debut, receiving high ratings from Fitch and Moody’s (AA+/Aa1). The mechanism successfully raised $500 million, with a robust orderbook exceeding $3 billion from global investors.

CCMM’s first issuance, a 3-year bond, raised $500 million following its announcement at COP29 in November 2024. The bond attracted significant investor interest, with a final pricing set at +36.6 basis points over the 3-year US Treasury. The bond offered a semi-annual yield of 4.838%, and the listing will be on the International Securities Market of the London Stock Exchange.

Accelerating Climate Finance Through Innovative Issuance

The CCMM aims to accelerate climate funding by frontloading future reflows from CIF’s Clean Technology Fund (CTF) funded operations. Managed by the World Bank, CCMM serves as Treasury Manager, Trustee, and host of the CIF Secretariat. This approach aims to close the financing gap for low-carbon technologies like renewable energy, sustainable transport, and also industry decarbonization in developing countries.

Strong Investor Support and High Demand

Tariye Gbadegesin, CEO of Climate Investment Funds said, “Today is a historic moment for climate finance. The inaugural CCMM bond issue has exceeded all expectations, with our order book over six times over-subscribed. This is an enormous vote of confidence and a sign of the keen market interest in backing high-quality clean energy projects.”

She added, “These bonds will multiply the funds available for scaling-up clean technology and infrastructure in developing countries – not in ten years, but now, when it’s most critically needed.”

Also read: Climate Investment Funds Approves $500 Million Plan to Restore Ethiopia’s Degraded Land

Empowering Clean Technology and Infrastructure

Moreover, CCMM’s bond issuance directly funds high-impact programs in developing countries, ensuring timely support for clean energy and infrastructure projects. CCMM maximizes its impact by exclusively channeling CIF funding through six AAA-rated multilateral development banks (MDBs), ensuring strong support for climate action and also sustainable development.

Apollo and Standard Chartered PLC have established a long-term strategic alliance to expedite global financing for renewable energy, sustainable transition, and infrastructure. Through this agreement, Standard Chartered’s worldwide distribution capabilities are combined with Apollo’s origination capabilities.The two companies are focused on addressing the increasing demand for sustainable energy solutions and infrastructure projects across the globe.

The partnership between Apollo and Standard Chartered will primarily focus on clean energy and transition financing. Both companies are likely to commit a total of up to $3 billion across asset classes and sectors. 

Apterra’s Role in Financing Activities

Apterra, an Apollo-owned platform, will primarily handle the origination of the financing activities for the partnership. Apterra specializes in originating, structuring, and deploying debt capital for infrastructure transactions worldwide. As part of the partnership, Standard Chartered has acquired a minority stake in Apterra. The bank will also support the investment origination, further expanding Apterra’s capacity to manage clean energy and transition projects.

Also read: Second High-Level Dialogue on clean energy financing held ahead of COP29

Insights from Apollo’s Jim Zelter

Jim Zelter, Apollo Asset Management Co-President, expressed excitement about the partnership, noting that the global industrial renaissance is creating significant capital demands across next-generation infrastructure, sustainable power, and other transition assets. He added that this agreement would accelerate both firms’ financing and investment activity in these areas, and highlighted that Standard Chartered has been a long-time banking partner to Apollo.

Apollo’s Commitment to Clean Energy

Apollo’s Clean Transition Capital strategy has been instrumental in advancing clean energy investments. Over the last five years, Apollo has deployed more than $40 billion into energy transition and climate-related projects. The firm believes that demand for capital in these areas will grow substantially in the coming years, making this partnership a crucial step in meeting global clean energy goals.

Apterra’s Growth and Future Plans

Apterra, founded in 2023, has already executed more than $4.8 billion in transactions. The platform is poised to increase its growth trajectory with strategic support from Standard Chartered. Led by co-CEOs Ralph Cho and Michael Pantelogianis, Apterra is set to further strengthen its position as a key player in financing clean energy and infrastructure projects.

Standard Chartered’s Expertise

Standard Chartered is recognized as one of the world’s top infrastructure lenders, especially in Asia, Africa, and the Middle East. The bank enjoys a significant interest share in the renewable energy sector, while its cross-border and wealth management expertise allows it to support large-scale infrastructure projects across the globe.

The alliance between Apollo and Standard Chartered represents a landmark step toward hastening the funding of sustainable infrastructure and clean energy projects. By committing up to $3 billion and pooling both firms’ resources and expertise, this collaboration supports a global transition to a greener, low-carbon future.