Investment manager Mirova has announced that it raised US$171 million in the first close of its blended finance debt Mirova Gigaton Fund.

Mirova, the sustainable investment-focused affiliate of asset manager Natixis Investment Managers to raise US$500 million for the fund and expects to deploy US$1.2 billion of private debt to medium-sized enterprises (SMEs) in solar home systems, agri-solar, commercial and industrial solar, telecom tower solarisation, mini-grids, as well as e-mobility, battery storage and carbon credit pre-financing. The vehicle has so far received commitments from the US International Development Finance Corporation (DFC); Swedfund, Sweden’s development finance institution for sustainable investments in developing countries.

Natixis Private Equity, the private equity arm of Natixis Investment Managers, also invested in the fund along with new investors.