Shell Foundation backs $200m emerging-markets climate fund with first-loss capital
The Lendable Transportation and Energy Fund raised $135 million at its first close in December 2025 and targets $200 million by mid-2027, with IFC, FMO and SIFEM anchoring senior tranches.
At a glance
Shell Foundation and the UK government are backing a $200 million climate fund for emerging-market clean transport and energy, with a first close of $135 million in December 2025, according to ESG News.
Shell Foundation's commitment anchors LTEF's most junior tranche, absorbing initial losses before senior investors are exposed.
The fund's first disclosed transaction is Watu, an asset financing company operating across Africa and Latin America.
Shell Foundation and the UK government are backing a $200 million climate fund for emerging-market clean transport and energy, with a first close of $135 million in December 2025, according to ESG News. The Lendable Transportation and Energy Fund, or LTEF, is targeting $200 million by mid-2027, leaving about $65 million to raise.
Shell Foundation's commitment anchors LTEF's most junior tranche, absorbing initial losses before senior investors are exposed. The International Finance Corporation, FMO, SIFEM and several family offices are anchoring the senior and Class A tranches, ESG News reports, in a structure that combines philanthropic, public and private capital.
The fund's first disclosed transaction is Watu, an asset financing company operating across Africa and Latin America. Watu has financed more than 8,000 electric vehicles since expanding into electric mobility in 2021, and LTEF's investment is intended to scale its lease-to-own electric motorcycle business to about 1,000 vehicles monthly for commercial riders.
Lendable, a technology-enabled investment firm managing more than $1 billion in assets under advisory, has partnered with Watu since 2017 and with Shell Foundation since 2016. LTEF is Shell Foundation's first direct investment in a Lendable-managed fund, according to ESG News. Lendable uses a proprietary platform, Maestro, to assess credit risk and monitor assets and impact.
Nick Jones, head of financial solutions at Shell Foundation, said too many emerging-market climate businesses struggle to get the financing they need to scale "despite strong demand and clear potential to improve livelihoods while reducing emissions." He described the anchor position as a way to demonstrate how catalytic capital can unlock significantly larger pools of private investment, and said the foundation hopes it signals to the market that climate-focused businesses serving underserved communities can deliver both impact and attractive investment opportunities.
| Party | Role in LTEF | Detail |
|---|---|---|
| Shell Foundation | Cornerstone investor, first-loss capital | Supported by UK FCDO; first direct investment in a Lendable-managed fund |
| IFC, FMO, SIFEM, family offices | Senior and Class A tranche anchors | Among the fund's other investors |
| Watu | First transaction | More than 8,000 EVs financed since 2021; scaling to ~1,000 e-motorcycles monthly |
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