Climate Investor 2 (CI2) achieved its first close with total commitments of USD 675 million, with USD 312.5 million unlocked as early as November 10. FMO committed USD 40m to Tier 2 of CI2's Construction Equity Fund. CI2 has a USD 1 billion target fund size and will provide expertise, technology and financing to infrastructure projects in emerging markets by mobilizing private sector financing at scale, supported by catalytic public sector donor funding. It will focus on water, sanitation and oceans infrastructure.
This first close builds on the late 2019 commitment to CI2’s Development Fund by the FMO-managed Dutch Fund for Climate and Development (DFCD). CI2 uses the same blended finance structure as CI1. This structure simplifies the way capital is deployed and reduces complexity by delivering a single financing source for each of the respective development, construction and operational phases of a project’s lifecycle.
Through its Development Fund, CI2 provides early-stage project development services and financing. Through its Construction Equity Fund, funded by 20% first loss donor funding, 40% equity at risk and 40% preferred, capped return, ‘senior’ equity, CI2 provides equity finance that accelerates project construction. With this approach, CI2 is designed to implement more projects faster, delivering positive environmental and social impact sooner.
Building on the comprehensive support of the Government of the Netherlands, including the Ministry of Foreign Affairs through the Dutch Fund for Climate and Development, commercial investors (KLP, IMAS Foundation, Sanlam, Aegon), Dutch public sector bank BNG Bank, FMO, and donors such as European Commission and Nordic Development Fund have committed to being the cornerstone support for CI2. This First closing highlights and re-affirms a broad public and private sector commitment to innovative climate change solutions, and demonstrates the mobilizing potential of the DFCD.
Learn more about the first close here.
About the DFCD:
The Dutch Fund for Climate and Development (DFCD) enables investments in projects aimed at climate adaptation and mitigation in developing countries. Learn more: www.thedfcd.com