tbli conferenceâ„¢ nordic 2014 - emerging markets - eric usher - un environment...

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  • www.scaf-energy.org

  • Development/Transaction Costs

    Where are the financiers along the project cycle ?

    Private Equity & Infrastructure Funds (18-25+%)

    Capital Markets(generally driven by P/E and othercomparables rather than return)

    Mezzanine Capital(12-15%, somewhere between debt and equity return)

    Carbon Finance(20-25+%)

    Debt Finance (Project Finance)(Indicatively, e.g., 7-8% in US$; 11-13% in INR)

  • Source: UNEP, Aequero

  • Source: UNEP, Aequero

  • Seed Capital Incentives(e.g., SCAF, CORFO)

    Transaction Cost Sharing (e.g., ACAD)

    Direct Lending to Projects

    Direct Private Equity Investments

    Loan Facilities Through Funds

    Publicly-backed DevCos(e.g., InfraCo, SN Power)

    Philanthropic / Publicly-backed Social Venture Funds(e.g., Acumen)

    Coaching, Mentoring & Advisory(e.g., CTI PFAN, Investment Advisory Facility)

    VC, PE & Infrastructure Funds

    Source: UNEP, Aequero

  • SCAF Cooperating Fund Agreement (CFA)



    Support Line 2: Seed Capital Co-Financing

    Support Line 1: Pipeline Development Support


  • Support Line 0 Fund Development Support Co-financing of fund development activities Fund manager needs to have secured anchor investment Repaid on fund first close!

    Support Line 1 Pipeline Development Support Technical services contract (pipeline development, coaching, etc) !

    Support Line 2 Co-Financing Seed Investments Co-financing seed project development costs. Repaid on project financial close (ie., SCAF shares development risk) !!

    Agreements are $1mn - $2.5mn each, with 2-3 year duration.

    Types of Support Provided in SCAF Cooperating Agreements


    SCAF Support Modalities

  • Contracted Fund ManagersAsia Africa


    VC/PE Fundswww.scaf-energy.org

    Eligible activities: Co-investment of feasibility studies, legal support and developer coaching !50/50 co-financing arrangement

    Lereko Metier

    Lereko Metier Sustainable Capital Fund

    Targets equity and debt placement in clean technology projects in Southern/Eastern Africa

    Fund size of USD 66 million, of which 25% outside South Africa.

    Support a number of early stage projects, dependent on availability of funds !SCAF support provided pro rata, 1 for every 5 of seed capital invested by the fund

    PE Funds

  • Example Seed Financed Project

    Name, Country

    Tech. Size (MW)

    Current Status

    Financing Co-finance Ratio; Leverage Ratio

    CO2 (MT)

    Kouga South Africa

    Wind 80 In construction

    Total: $3.6mn dev.; $44mn equity; $95mn debt Fund: $1.2mn dev. (40%SCAF); $11mn equity

    4x co-finance 50x fund; 600x total


    Cooperating fund provided $800K Seed Financed Development Loan - soft quasi equity investment,

    SCAF provided $340K of co-financing for: - EIA, permitting, engineering, grid connection studies. - grant with equiv payout to developer on financial close


  • Africa

    Country Tech. Size (MW)


    South Africa

    Wind 80 In construction

    Tanzania Small hydro 10 Seed Financed, Financial closing

    Uganda Small hydro 5 Seed Financed, Financial closing

    Uganda Small hydro 5 Seed Financed, Financial closing

    Kenya Geothermal 35 Seed Financed, Exploration drillingKenya Wind diesel

    hybrid5MW, 15 sites

    Financial closing on seed financing

    Tanzania Wind 50 Financial closing on seed financing


    Country Tech. Size (MW)



    Wind 48 Seed financed, Financial closing


    Small hydro

    25 In construction


    Wind 16 Pre-construction

    India Wind 80 Seed financed

    Mekong region

    Wind Solar Devco

    Seed financed

    Thailand Solar PV Devco Seed financed

    Indonesia Small hydro Devco

    Seed financed


    Seed Financed Projects

  • Thank You!



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