Development Finance Funds SWITCH to Green
Description: Development Finance Funds SWITCH to Green coordination meeting Brussels 10 October 2017 A dedicated impact asset manager 2 About Finance in Motion Impact asset management PPP Structures Technical Assistance (individual, sector, studies)
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slide1. Development Finance Funds SWITCH to Green coordination meeting
Brussels – 10 October 2017<br>
slide2. A dedicated impact asset manager 2 About Finance in Motion Impact asset management PPP Structures Technical Assistance
(individual, sector, studies) Economically sustainable Social
impact Environmental impact Investments
(equity/debt, direct/via FIs Long term value Responsible finance Local presence Full range of services<br>
slide3. Regional presence 3 About Finance in Motion Target countries with local office Target countries without local office Additional presence<br>
slide4. Investment and impact strategy
Product development
Country assessment
Investment origination
Monitoring and reporting of investment performance
Monitoring and reporting of impact
E&S Investment Management Due diligence
Internal rating
Monitoring of portfolio and market risks
Portfolio management (limit systems)
Restructuring and work-out Risk Management Concept development
Fund structuring
Fund raising
Market intelligence and research
Asset-liability management
Treasury
Transaction management
MIS
External relations
Legal
Compliance General Fund Management Management of TA facility
Fund raising
Designing TA projects
Selecting consultants
Steering implementation
Conceptualizing and managing development impact and sector studies Technical Assistance Management Full range of fund management services 4 About Finance in Motion<br>
slide5. Our mandates 5 About the Funds<br>
slide6. Key figures in a nutshell 6 About the Funds Countries of operation
25 Committed capital
EUR 1.8 bn Investments made Cumulative amount
EUR 3.18 bn Number 512 Working with 35 investors 106 Partner Institutions Senior Debt
EUR 1.25 bn Equity
EUR 9.7 mn Sub-debt
EUR 154.3 mn Outstanding portfolio EUR 1.4 bn Term deposits
EUR 26.5 mn All figures as of 30 June 2017<br>
slide7. 7 About the Funds Stable expansion despite of challenging environments EFSE GGF SANAD eco.business All EUR million All figures as of 31 March 2017 unless otherwise mentioned<br>
slide8. Shareholders and Investors 8 About the Funds DEFRA<br>
slide9. EFSE’s economic and development performance since 2005 9 About the Funds<br>
slide10. Mission 10 The eco.business Fund Priority sectors Promote business practices that contribute to biodiversity conservation, to the sustainable use of natural resources, and to mitigate climate change and adapt to its impacts in Latin America and the Caribbean. Agriculture Fisheries and aquaculture Forestry Tourism<br>
slide11. Providing Investment and Technical Assistance 11 The eco.business Fund Funding Dedicated
Financing Investors Sponsoring Technical Assistance Direct Investments (max. 15% of outstanding portfolio) Target Group Local Partner institutions1) 1) Commercial banks, microfinance institutions, leasing companies, etc. Sponsors<br>
slide12. Capital Structure 12 The eco.business Fund Junior Shares Senior Shares Senior Notes Subordinated Notes Private investors: ASN Bank, Calvert Foundation, Conservation International, Finance in Motion GLS Bank
IFI/DFI investors: FMO, KfW, OeEB
Public investors: EU, BMZ, DEFRA<br>
slide13. Types of Investments 13 The eco.business Fund Investments via Financial Institutions Direct Financing (max. 15% of outstanding portfolio) Type of partners
Strong institutions with the willingness and capacity to reach the target group
Benefits
Larger scale and efficiency through the use of existing/enhanced local infrastructure
Help to make biodiversity finance a mainstream product
Limitation of the credit risk to partner institution
Instruments
Mostly senior debt and in select cases subordinated debt Type of partners
High-impact projects/businesses in the target countries
Benefits
Direct support of the target group through flagship projects
High potential for replication
Instruments
Debt vehicles with different levels of subordination and flexible features to better serve the business cycle of clients<br>
slide14. Investments via financial institutions – Use of funds 14 The eco.business Fund Final borrowers must meet at least one of the following conditions:
1. Certified producers
The final borrower has to hold one of 21 certifications for sustainable production approved by the Fund, including:
2. “Green list” activities
Funding must be for activities included in a standard list of specific uses that have a significant positive impact on conservation, such as:
Purchase and installation of water-saving drip or micro-sprinkler irrigation systems
Renewal or establishment of cocoa plantations and shade-grown coffee under agroforestry systems
Financing infrastructure and equipment required to produce compost and organic fertilizers
Financing water filtration systems to promote water purification and soil quality
3. Non-standardized measures
Selected projects with a high impact on both the biodiversity conservation and sustainable use of natural resources<br>
slide15. The Fund’s Technical Assistance Vehicle 15 The eco.business Development Facility Main objectives :
Support the Fund‘s mission and strategy
Enhance the Fund‘s impact
Create of synergies with investments
Contribute to a conducive environment for sustainable businesses DF Committee DF Management Fiduciary account Sponsors Sponsors Projects<br>
slide16. Types of Technical Assistance 16 The eco.business Development Facility R&D, Impact Assessment
Provide intelligence for the Fund and estimate its impact Sector Activities Studies, raising awareness, sector events For financial institutions
Capacity building and awareness raising for sustainable lending practices For end-borrowers
Supporting the adoption of sustainable practices or conversion into sustainable businesses<br>
Brussels – 10 October 2017<br>
slide2. A dedicated impact asset manager 2 About Finance in Motion Impact asset management PPP Structures Technical Assistance
(individual, sector, studies) Economically sustainable Social
impact Environmental impact Investments
(equity/debt, direct/via FIs Long term value Responsible finance Local presence Full range of services<br>
slide3. Regional presence 3 About Finance in Motion Target countries with local office Target countries without local office Additional presence<br>
slide4. Investment and impact strategy
Product development
Country assessment
Investment origination
Monitoring and reporting of investment performance
Monitoring and reporting of impact
E&S Investment Management Due diligence
Internal rating
Monitoring of portfolio and market risks
Portfolio management (limit systems)
Restructuring and work-out Risk Management Concept development
Fund structuring
Fund raising
Market intelligence and research
Asset-liability management
Treasury
Transaction management
MIS
External relations
Legal
Compliance General Fund Management Management of TA facility
Fund raising
Designing TA projects
Selecting consultants
Steering implementation
Conceptualizing and managing development impact and sector studies Technical Assistance Management Full range of fund management services 4 About Finance in Motion<br>
slide5. Our mandates 5 About the Funds<br>
slide6. Key figures in a nutshell 6 About the Funds Countries of operation
25 Committed capital
EUR 1.8 bn Investments made Cumulative amount
EUR 3.18 bn Number 512 Working with 35 investors 106 Partner Institutions Senior Debt
EUR 1.25 bn Equity
EUR 9.7 mn Sub-debt
EUR 154.3 mn Outstanding portfolio EUR 1.4 bn Term deposits
EUR 26.5 mn All figures as of 30 June 2017<br>
slide7. 7 About the Funds Stable expansion despite of challenging environments EFSE GGF SANAD eco.business All EUR million All figures as of 31 March 2017 unless otherwise mentioned<br>
slide8. Shareholders and Investors 8 About the Funds DEFRA<br>
slide9. EFSE’s economic and development performance since 2005 9 About the Funds<br>
slide10. Mission 10 The eco.business Fund Priority sectors Promote business practices that contribute to biodiversity conservation, to the sustainable use of natural resources, and to mitigate climate change and adapt to its impacts in Latin America and the Caribbean. Agriculture Fisheries and aquaculture Forestry Tourism<br>
slide11. Providing Investment and Technical Assistance 11 The eco.business Fund Funding Dedicated
Financing Investors Sponsoring Technical Assistance Direct Investments (max. 15% of outstanding portfolio) Target Group Local Partner institutions1) 1) Commercial banks, microfinance institutions, leasing companies, etc. Sponsors<br>
slide12. Capital Structure 12 The eco.business Fund Junior Shares Senior Shares Senior Notes Subordinated Notes Private investors: ASN Bank, Calvert Foundation, Conservation International, Finance in Motion GLS Bank
IFI/DFI investors: FMO, KfW, OeEB
Public investors: EU, BMZ, DEFRA<br>
slide13. Types of Investments 13 The eco.business Fund Investments via Financial Institutions Direct Financing (max. 15% of outstanding portfolio) Type of partners
Strong institutions with the willingness and capacity to reach the target group
Benefits
Larger scale and efficiency through the use of existing/enhanced local infrastructure
Help to make biodiversity finance a mainstream product
Limitation of the credit risk to partner institution
Instruments
Mostly senior debt and in select cases subordinated debt Type of partners
High-impact projects/businesses in the target countries
Benefits
Direct support of the target group through flagship projects
High potential for replication
Instruments
Debt vehicles with different levels of subordination and flexible features to better serve the business cycle of clients<br>
slide14. Investments via financial institutions – Use of funds 14 The eco.business Fund Final borrowers must meet at least one of the following conditions:
1. Certified producers
The final borrower has to hold one of 21 certifications for sustainable production approved by the Fund, including:
2. “Green list” activities
Funding must be for activities included in a standard list of specific uses that have a significant positive impact on conservation, such as:
Purchase and installation of water-saving drip or micro-sprinkler irrigation systems
Renewal or establishment of cocoa plantations and shade-grown coffee under agroforestry systems
Financing infrastructure and equipment required to produce compost and organic fertilizers
Financing water filtration systems to promote water purification and soil quality
3. Non-standardized measures
Selected projects with a high impact on both the biodiversity conservation and sustainable use of natural resources<br>
slide15. The Fund’s Technical Assistance Vehicle 15 The eco.business Development Facility Main objectives :
Support the Fund‘s mission and strategy
Enhance the Fund‘s impact
Create of synergies with investments
Contribute to a conducive environment for sustainable businesses DF Committee DF Management Fiduciary account Sponsors Sponsors Projects<br>
slide16. Types of Technical Assistance 16 The eco.business Development Facility R&D, Impact Assessment
Provide intelligence for the Fund and estimate its impact Sector Activities Studies, raising awareness, sector events For financial institutions
Capacity building and awareness raising for sustainable lending practices For end-borrowers
Supporting the adoption of sustainable practices or conversion into sustainable businesses<br>