USD 1 billion
If you are a developer seeking funding and your project complies with the above funding criteria, or you would like more information, please contact us at [email protected] or fill in our initial self-assessment form.
Climate Investor One focuses on financing projects in low and lower middle income countries in the wind, solar, and hydro sectors with an average size of 25-75 MW or USD 80-100m in total investment cost. Climate Investor One consists of three stages:
A Development Fund funded by non-repayable donor contributions would finance up to 50% of development costs for projects by private sector developers. Its specific aim would be to improve projects’ bankability from an early stage, which would include activities that projects often struggle to complete for lack of finance, such as help securing land titles and permits, concluding a power purchase agreement, conducting an environmental and social impact assessment, and reaching financial close by securing 100% of investment costs. The donor capital used to fund this stage would be converted to equity stakes for successful projects that would in turn be bought out by the Construction Finance Facility at commercial rates. In this way, the Development Facility would be an evergreen facility, recycling the returns made from the construction finance facility buy-outs to fund the development of subsequent new projects.
A Construction Fund would provide up to 75% of investment costs on commercial terms to projects. It would be funded by three different tiers representing different risk/return positions: A $100m Tier 1 donor tranche to cover potential losses; a $200m Tier 2 subordinate tranche taken up by DFIs and potentially PE/commercial investors ; and a $200m Tier 3 senior tranche taken up by commercial investors comfortable with construction risks (approx. 13 year 8% notes). Because such a facility would reduce both the complexity and development time with fewer financiers for project developers to negotiate with, it could also reduce the overall cost of financing and project development.
A Re-financing Fund would have right of first refusal on up to 50% of the long-term refinanced debt of derisked projects after they enter commercial operation. The price for re-financing would be set by the other 50% of external investors and local banks. The Refinancing Facility would consist of investors seeking long-term de-risked infrastructure debt, and in this way, attract a new tranche of investors to clean energy in developing countries.
Learn more about the Fund here
This page provides an overview of Climate Investor One. For more information on CIO's Development Fund, click here.
European Union, Green Climate Fund, USAID via PowerAfrica, Nordic Development Fund, Directorate General for International Cooperation within the Ministry of Foreign Affairs of the Netherlands, NWB Bank, Swedfund, FMO, KLP, MP Pensjon, Sanlam, Triodos Bank, AEGON, African Development Fund, Atradius, FinDev Canada
CFM has certain criteria it employs when identifying suitable projects for funding:
- The project must be located in Africa, Latin America or Asia
- It must be located in a low, lower middle or upper-middle income country
- It aligns with the technological focus of the fund
- The project sponsor or developer also has access to a minimum of 25% of its own equity contribution towards construction costs
- The project sponsor or developer should have a minimum ticket size of USD 10 million
Please, folow this link to learn more on the eligibility criteria
Burundi, Cameroon, Djibouti, Indonesia, Kenya, Madagascar, Malawi, Mongolia, Morocco, Nigeria, Uganda, Ecuador, Ethiopia, Mauritius, Philippines, Senegal, Tunisia, Zambia.