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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)

SCAF CONCEPT

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Support Line 2: Seed Capital Co-Financing

Support Line 1: Pipeline Development Support

Project

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

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SCAF Support Modalities

Contracted Fund ManagersAsia Africa

SCAF I FUNDS

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

6.1

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

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Africa

Country Tech. Size (MW)

Stage

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

Asia

Country Tech. Size (MW)

Stage

Philippines

Wind 48 Seed financed, Financial closing

Philippines

Small hydro

25 In construction

Philippines

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

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Seed Financed Projects

Thank You!

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