Post on 20-Jul-2015
transcript
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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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