• Investment vehicle plans sustainable financing
  • BBVA commits $250m to new fund
  • Focus on érraAltéenergy transition and decarbonisation

The UAE’s Altérra, one of the world’s biggest private climate funds, plans to launch a $1.2 billion co-investment vehicle with Spanish bank BBVA to provide sustainable financing in advanced and emerging markets.

BBVA has committed $250 million to the new Altérra Opportunity Fund, the two companies said in a joint statement.

altérra - Altérra and Spanish lender to launch $1.2bn climate fund

The fund will make climate-aligned investments across infrastructure, private equity and private credit, with a focus on investments across energy transition, industrial decarbonisation, climate tech and sustainable living in North America, Latin America, Europe and other growth markets.

altérra - Altérra and Spanish lender to launch $1.2bn climate fund

The fund, once launched and approved, will be domiciled in the Abu Dhabi Global Market free zone. It will also consolidate existing co-investments from the Altérra Acceleration Fund into a dedicated structure managed by the Emirati company.

“The initiative accelerates Altérra’s ambition to mobilise third-party capital at scale and expand its global network of institutional collaborators,” the statement said.

Carlos Torres Vila, chair of BBVA, said the bank sees Altérra as a long-term partner to mobilise capital at scale, which will deepen its presence in fast-growing climate finance hubs such as Abu Dhabi.

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In December, Altérra announced investments in a fund managed by Denmark-headquartered Copenhagen Infrastructure Partners to support the development of large-scale renewable projects globally.

Altérra, headquartered in Abu Dhabi Global Market, was announced during the UN climate summit in 2023. The fund launched in partnership with US-based BlackRock and TPG, as well as Canada’s Brookfield.

In February 2024, Altérra’s chief executive Majid Al Suwaidi said the company aimed to catalyse the investment of $250 billion of private capital by 2030.