2. COMPLETE LIFECYCLE
FINANCING FOR
RENEWABLE ENERGY
Climate Investor One is an innovative approach to infrastructure
financing designed to accelerate the delivery of renewable energy
infrastructure in emerging markets.
Climate Investor One combines three investment funds into one facility
to finance renewable energy projects at specific stages of the project
lifecycle. At an early project stage, Climate Investor One provides
financial, technical, environmental, social development and structuring
support through a Development Fund. Climate Investor One then
reduces the complexity associated with multi-party negotiations by
equity financing a large part of construction through a Construction
Equity Fund. Once the project is operational, Climate Investor One
mobilises long-term debt financing through a Refinancing Fund with
the objective of optimising the financing over the operational life of
the project.
20 PROJECTS$ 1 BILLION AVOIDING
1,5 M TONNES CO2
EMISSIONS
3. Climate Investor One includes:
A Development Fund to reduce development
times and improve bankability of projects.
A Construction Equity Fund to provide a
single source of equity finance to fund
construction and progress projects to an
operational stage.
A Refinancing Fund to provide long-term
and low risk debt during operations.
Innovative Features
Climate Investor One is the only
investment platform offering
5 different risk/return investment
options in well-structured renewable
energy projects in emerging markets
within a single structure.
Geographical Areas
Through its regional offices, Climate
Investor One will invest in countries in
Africa, Asia and Latin-America.
Technology and Target Size
The technology of preference is on-shore
wind, solar power and run-of-river hydro.
Climate Investor One will target medium-
sized projects, from 25MW to 75 MW.
CLIMATE INVESTOR ONE
KEY FEATURES
Strategy
The principal objective of Climate Investor One is to develop projects and achieve
medium to long-term investment returns through private sector participation in a
portfolio of renewable energy assets in emerging markets.
Recent years have seen more developing countries establishing supportive regulatory
frameworks for private investment in renewable energy. However, finance remains
scarce, requires multiple providers of capital, and the use of complex financing
arrangements often leading to extensive delays in the development period, higher costs,
and sometimes outright failure.
By combining several innovative investment funds into one, Climate Investor One
helps early-stage renewable energy projects achieve bankability quicker, provides a
full lifecycle financing solution, and mobilises capital into emerging markets at a more
attractive risk profile to institutional investors.
4. Fund Closing Dates
A first close is targeted for each fund
in Q1 2016 with subsequent interim closes
within the following 18 months.
Facility Size
Climate Investor One is targeting total
commitments of US$ 1.05 billion at final
close:
US$ 50 million for the Development Fund
US$ 500 million for the Construction
Equity Fund. and
US$ 500 million for the Refinancing Fund.
Funds Life
25 years from the first closing date.
Investment Period
The investment period of each fund will be
the earlier of the fund being fully invested
and 15 years.
Portfolio Diversification
Climate Investor One will seek to invest
capital across the technology range and
geographic locations. Investment sizes will
range per fund but will not exceed 15% of
the Total Commitments of any Fund in any
one project.
DEVELOPMENT FUND
US$ 50 million
CONSTRUCTION
EQUITY FUND
Tier 1: US$ 100 million
REFINANCING
FUND
US$ 500 million
Construction Equity Fund
Tier 2: US$ 200 million
Construction Equity Fund
Tier 3: US$ 200 million
6. Climate Fund Managers (CFM), is the fund
manager of Climate Investor One. CFM is a joint venture
between FMO and Phoenix InfraWorks, both experienced in
infrastructure investing, asset and fund management.
The CFM team will provide strategic, commercial, operational
and financial expertise into investment activities aimed at
delivering superior risk adjusted returns for
investors and creating value for communities.
Andrew Johnstone: T: +27 82 901 4034
a.johnstone@climatefundmanagers.com
Georges Beukering: T: +31 70 314 9867
g.beukering@climatefundmanagers.com
FMO is the Dutch Development Bank,
with more than 45 years investment
experience in the private sector in
developing countries and emerging
markets and a strong competence in
energy.
Phoenix InfraWorks is an infrastructure
investment business with expertise in
Africa, Europe and Asia including a track
record in fundraising, acquiring,optimising,
and disposing of assets.
This document is being provided to targeted recipients as a source of preliminary information about Climate Investor One. This document does not
constitute an offer to sell or a solicitation of an offer to buy any securities. This document does not contain all the information necessary to fully
evaluate any transaction or investment, and it should not be relied upon. Any investment decision should be made based solely upon appropriate
due diligence and upon receipt and careful review of relevant offering documents. Recipients of this document should neither treat nor rely on the
contents of this document as advice relating to legal, taxation or investment matters and are advised to consult their own professional advisers. This
document includes forward-looking statements that represent our opinions, expectations, beliefs, intentions, estimates or strategies regarding the
future, which may not be realized. Actual and future results and trends could differ materially from those described by such statements due to various
factors, including those beyond our ability to control or predict. CFM does not undertake any obligation to update or revise any forward- looking
statements, whether as a result of new information, future events or otherwise. Past performance is not a guarantee of future results or returns. Any
discussion of past or proposed investment opportunities should not be relied upon as an indication of future deal flow. Targeted returns are not
guaranteed. This document includes information obtained from publicly available information and from third party sources considered to be reliable.
Whilst this information is provided in good faith, it is not, and does not purport to be comprehensive and has not been independently verified. The
Development Fund, the Construction Equity Fund, the Refinancing Fund are on the date hereof not yet in existence and CFM is in the process of
being established. The Development Fund, the Construction Equity Fund and the Refinancing Fund described herein are therefore not registered or
approved for marketing in any jurisdiction (if required) and are therefore not under public supervision. This presentation is solely intended to provide
the reader with an overview of features and modalities of the envisaged structure. Securities in the funds described herein may not be offered or sold
in the United States absent registration under the US Securities Act of 1933, as amended (the “Securities Act”), or an exemption therefrom. The Fund
Manager has not registered and does not intend to register any securities under the Securities Act and does not intend to make a public offering of any
securities in the United States. Securities in the funds described herein may not be transferred or resold (i) except as permitted under the constituent
documents of the applicable fund and (ii) unless they are registered under the Securities Act and under any other applicable securities laws or an
exception from such registration is available. Interests in the funds described herein have not been approved or disapproved by the US Securities
and Exchange Commission (the “SEC”) or by the securities regulatory authority of any state, nor has any other authority or commission passed upon
the accuracy or adequacy of this material. Any representation to the contrary is a criminal offense. No fund described herein will be registered as an
investment company under the US Investment Company Act of 1940, as amended, in reliance on one or more exemptions or exclusions thereunder.
Each fund described herein will obtain appropriate representations and undertakings from prospective investors to ensure that applicable conditions
are met. CFM is not registered as an investment adviser with the SEC pursuant to the US Investment Advisers Act of 1940, as amended, and the
protections of such registration will not be afforded to the funds described herein or any investor in such funds.
PHOENIXINFRAWORKS
