Project detail - COOPERATIEF CI2 CONSTRUCTION EQUITY

COOPERATIEF CI2 CONSTRUCTION EQUITY

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Who is our client

Cooperatief CI2 Construction Equity Fund U.A. (“CEF”) is being raised by Climate Fund Managers (“CFM”) as part of the Climate Investor 2 ("CI2") initiative. CFM was established in 2015 as a joint venture between FMO, the development finance institution of the Netherlands, and Sanlam Infraworks, a platform company of the Sanlam Group, one of Africa's leading financial services groups. CFM is a strategic initiative to support the raising of public and private capital for climate finance in a blended structure and at scale, while addressing a number of bottlenecks in financing climate related infrastructure, notably lack of well-developed assets and the long timelines involved in obtaining project finance for construction.

Funding objective

Climate Investor 2 invests in the development, construction, and operation of infrastructure projects in the Water, Sanitation and Oceans sectors in emerging markets globally, taking environmentally and social returns carefully into account in addition to the financial returns. CI2 aims to predominantly finance projects in the water treatment & supply, wastewater treatment and waste-to-energy sectors in eligible countries in Asia, Africa and Latin America.

Why we fund this project

The investment fits FMO’s mandate of contributing to climate action while mobilizing commercial investors. CI2 is being raised by CFM on the back of launching Dutch Fund for Climate & Development (“DFCD”), which channels the Dutch government commitment to international climate finance. CI2 endeavors to create social and environmental impact by developing and building water, sanitation and ocean related infrastructure projects.

Environmental and social rationale

Category A Fund, due to investments in high-risk sectors, which will require strong ESG management throughout the whole project life-cycle. The Fund will invest in construction activities with higher probability of potential negative impacts. The risk profile of the projects under development is generally cat B+ but the investment scope also allows for category A investments to be made. CFM is an experienced fund manager with a strong E&S expert team and a sophisticated ESMS in place, both of which will be expanded further to reflect the latest insights and fit the Climate Investor 2 sector scope, which differs from the sector scope of Climate Investor 1.

Country
Global
Sector
Energy
Signing date
11/8/2021
Total FMO financing
USD 35.00 MLN
Fund
FMO
Risk categorization on environmental and social impacts, A = high risk, B+ = medium high risk, B = medium risk, C = low risk Environmental & Social Category
(A, B+, B or C)
A