Wednesday, March 20, 2019 UTC

AGF Magazine - March 2019 issue

  • We focus on fixed income opportunities in both public and private markets. Read on to find in which fixed income instruments and in which African markets to invest on pp. 10-11. In addition, Ashley Benatar of Ashburton Investments shares his views on benefits and risks of investing in mezzanine debt on p.22.
  • We speak with Jérémie Ceyrac, Head of Equity, Responsible Investments at Proparco to learn more about the French development institution, financial products on offer, recent investments in Africa and African impact investment scene (pp. 13-15).
  • This month’s market feature focuses on Nigeria. Sven Richter, Fund Manager, Drakens Capital, writes about his recent trip to the West African country and his observations. “While Nigeria is attractive as an investment destination, the GDP growth is a disappointment for a county that we expect to be one of the leaders in Africa,” he says (pp. 16-17).
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News > Investors

FinDev Canada invests $20m in Construction Equity Fund

Anna Lyudvig
Dec. 11, 2018, 2:09 p.m.
490

Word count: 585

FinDev Canada has announced a $20m commitment made to Climate Investor One’s (CIO) Construction Equity Fund to support the transition to renewable energy in emerging markets, helping avoid approximately 1.2 million tons of CO2 emissions. 

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FinDev Canada has announced a $20m commitment made to Climate Investor One’s (CIO) Construction Equity Fund to support the transition to renewable energy in emerging markets, helping avoid approximately 1.2 million tons of CO2 emissions. 

CIO is an innovative blended finance initiative which is helping fast track some 1,100MW of renewable energy, benefiting 8 million people and mobilizing up to USD 3 billion in private capital.

In addition to the positive impact in climate change mitigation, the projects supported by CIO are expected to create over 25,000 temporary and permanent jobs, according to FinDev Canada estimations. 

“FinDev Canada and Climate Investor One are responding to the urgent call for a more sustainable economy by funding new sources of renewable energy,” said Paul Lamontagne, Managing Director of FinDev Canada. 

“The latest reports are clear: global temperature is on the rise and we must act now. Quoting one of the studies, ‘the scale and pace of current action remains insufficient’ and we are determined to have a positive impact by supporting a faster transition to sustainable sources of energy.”

FinDev Canada will bring additional value through its participation in the Fund’s Advisory Board, offering capacity to the Fund in areas such as women’s economic empowerment and financial innovation. 

Climate Fund Managers, the manager of the CIO facility shares with FinDev Canada a focus on climate change mitigation and adaptation, women’s economic empowerment and job creation, contributing to several of the Sustainable Development Goals. 

The participation of FinDev Canada and other development finance institutions is expected to have a mobilizing effect in attracting commercial investors. 

With this investment, FinDev Canada is the first North American institution to commit capital to CIO’s Construction Equity Fund.

CIO was launched in partnership between Dutch Development Bank, FMO, and Sanlam InfraWorks – part of the Sanlam Group, of South Africa. 

CIO, managed by Climate Fund Managers comprises three separate, but operationally interlinked funds: the Development Fund, the Construction Equity Fund and the Refinancing Fund, each tailored to finance a stage in the renewable energy project’s lifecycle: development, construction and operations.

With a focus on solar, wind and run-of-river hydro technologies targeted across Africa, Asia and Latin America, CIO will mobilise further commercial funds and build approximately 20 renewable energy projects, delivering an estimated 3,200 GWh of additional capacity. 

Approximately 70% of the fund’s projects will be built in least developed countries (LDC) and lower-middle-income countries (LMIC.) 

Climate Fund Manager has adopted a responsible investment framework, which requires that all projects meet country specific environmental and social laws as well as international standards, including IFC Performance Standards.

Innovative finance and mobilization of the private sector
Climate Fund Managers announced the fourth close of Climate Investor One at $555m with the inclusion of FinDev Canada. 

The Fund’s innovative structure connects three separate funds that finance the different stages of each project: development, construction and operations. 

This offers different risk-return preferences, including de-risked and stable options in the construction and operations phase, suitable for commercial investors. 

Andrew Johnstone, CEO of Climate Fund Managers, said: 
“Climate Investor One is a serious response to the threat of climate change. Using new blended finance structures and investment approaches, Climate Investor One brings together like minded and climate committed investors to make a difference. We are very pleased to welcome FinDev Canada to the Climate Investor One community and expand this vital mobilization of capital to parties on both sides of the Atlantic Ocean.”
 

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