BlackRock secures $1bn climate transition credit mandate

The deal was announced as part of the surprise launch of a new climate-focused investment manager by the Abu Dhabi royal family.

BlackRock has announced a partnership with an Abu Dhabi sovereign wealth fund to invest $1 billion into its climate-transition-oriented private debt strategy.

The Abu Dhabi royal family launched Altérra as the world’s largest private investment vehicle for climate change at the World Climate Action summit yesterday and announced its tie up with Blackrock today to commit a total of $2 billion to climate transition investments across equity and debt.

BlackRock launched its climate-transition debt strategy in October with a goal of financing mid-market companies in Europe and the US that demonstrate strong climate transition characteristics, and which are committed to reducing their emissions. The fund will take an active approach with its borrowers to ensure they are able to meet decarbonisation targets.

Investment will take place via a newly created BlackRock Climate Transition Vehicle which will also commit $1 billion to various infrastructure equity funds managed by BlackRock. The partnership will make the UAE a focus for investment, backing continued growth in the asset management and advisory businesses in the country.

Commenting on the partnership, Majid Al Suwaidi, chief executive officer at Altérra, said: “Our partnership with BlackRock is an important moment for Altérra and reflects our ambition to use this capital to mobilize at least $250 billion of overall investment by 2030. BlackRock brings climate and industry-specific expertise and a broad variety of opportunities to invest in climate-related projects at scale.”