Finance
UAE's ALTERRA and Spanish lender BBVA plan to launch $1.2 billion climate fund
Published by Global Banking and Finance Review
Posted on January 15, 2026
Global Banking and Finance Review
Company
Published by Global Banking and Finance Review
Posted on January 15, 2026
DUBAI, Jan 15 (Reuters) - United Arab Emirates climate fund ALTERRA is planning to launch a $1.2 billion co-investment vehicle with Spanish lender BBVA to finance climate-aligned investment globally across infrastructure, private equity and private credit, the two firms said on Thursday.
BBVA has committed $250 million as a proposed strategic LP to the new vehicle, which was dubbed ALTERRA Opportunity Fund, they said in a joint statement.
The fund will invest in climate investments across energy transition, industrial decarbonization, climate tech and sustainable living, focusing on geographies including North America, Latin America and Europe as well as "other growth markets," they said without providing further details.
ALTERRA, set up in 2023 by the UAE with $30 billion, aims to mobilize $250 billion globally by 2030. It has so far invested mostly through climate and transition funds run by leading global investment firms BlackRock <BLK.N>, Brookfield <BN.TO>, and TPG <TPG.O>.
"The initiative accelerates ALTERRA’s ambition to mobilize third-party capital at scale and expand its global network of institutional collaborators," the two firms said in the statement.
Once launched and approved, the fund will be domiciled in Abu Dhabi's financial centre ADGM. It will consolidate existing co-investments from ALTERRA Acceleration Fund into a dedicated structure managed by the Emirati company.
(Reporting by Federico Maccioni, editing by Alexandra Hudson)
A climate fund is a financial vehicle designed to support projects that address climate change, focusing on sustainable investments in areas like renewable energy, energy efficiency, and environmental conservation.
Private equity refers to investment funds that buy and restructure companies not listed on public exchanges, aiming to improve their value before selling them for a profit.
Co-investment is when multiple investors pool their resources to invest in a single project or fund, allowing for shared risk and increased capital for larger investments.
Infrastructure investment involves funding projects that provide essential services, such as transportation, utilities, and communication systems, which are crucial for economic development.
Explore more articles in the Finance category
