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URL: https://www.cygnumcapital.com/news/rmb-invests-in-leading-climate-tech-company-koko-as-part-of-carbon-business-growth
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RMB INVESTS IN LEADING CLIMATE TECH COMPANY KOKO AS PART OF CARBON BUSINESS
GROWTH



LONDON, UK: 10 JANUARY 2024 – RMB announced today a strategic partnership with
climate technology leader KOKO, where it has acted as the lead mandated arranger
and financier for a pioneering carbon financing solution, to further propel
KOKO’s climate objectives. Cygnum Capital acted as financial and structuring
adviser to KOKO.

In Africa, over 900 million people cook with polluting fuels like charcoal,
directly driving millions of hectares of deforestation and over 600,000 deaths
from household air pollution each year, and emitting greenhouse gases that are
similar in scale to the global aviation industry. To solve this problem, a
continent-wide energy transition to clean and modern fuels is required. KOKO is
leading this transition, replacing demand for charcoal through supplying over
1.1 million homes with bio-ethanol cooking fuel distributed through a dense
network of high-tech KOKO Fuel ATMs located in thousands of corner stores across
urban Kenya. The resultant carbon revenues are shared with households as a
non-government energy subsidy, enabling even the poorest households to switch.

Says Phil Norton, Carbon Finance Lead at RMB: “We are proud to partner with KOKO
in supporting their continued rapid growth while bringing far more affordable
and lower emissions energy to millions of people in Africa. As a pan-African
investment bank, this deal fits well within our ambition to build a market
leading carbon trading and finance business operating across Africa, serving
both existing and new clients.”

According to Greg Murray, CEO & Co-Founder of KOKO, RMB has demonstrated strong
conviction on the opportunity to harness carbon in a manner that transforms the
lives of Africa’s citizens. "We’ve been looking for an entrepreneurial banking
partner that understands Africa, climate markets and technology. We are proud to
embark on this long-term partnership with RMB to help accelerate the expansion
of KOKO’s platform across Africa.

”Nigel Beck, Head of Sustainable Finance and ESG Advisory at RMB, adds:
"Partnering with KOKO will help develop the African carbon market and will align
closely with the Nairobi Declaration, Africa’s recently communicated strategy on
using carbon as a mechanism to help finance Africa’s Energy transition."

The Nairobi Declaration was delivered at the close of the Africa Climate Summit
in Kenya in September, and formed a core part of Africa’s negotiating position
at COP28 Dubai.

Cygnum Capital acted as financial and structuring adviser to KOKO. James Doree,
Head of Corporate IB at Cygnum Capital, noted: “Koko has been able to achieve a
limited recourse debt financing using its carbon income to fund the growth of
its platform across Africa. This is where innovative finance meets innovative
business and climate solutions. Koko is already delivering affordable clean fuel
solutions for households in Kenya and will continue to leverage carbon markets
to do this across the Continent.”

To find out more about
Cygnum
fund click here






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