Download Investing in Energy Efficiency and Renewable Energy

The Green for Growth Fund
An innovative blending instrument financing energy efficiency and renewable
energy
Brussels, 02 February 2017
Marketing Material
Contents
01 About the GGF
02 Leveraging Donor Capital
03 The GGF in Figures
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Marketing Material
01 About the GGF
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Marketing Material
About the GGF
Mission Statement
The mission of the Fund is to contribute, in
the form of a public-private partnership with
a layered risk/return structure, to enhancing
energy efficiency and fostering renewable
energies in the Southeast Europe region
including Turkey (SEE) and the European
Eastern Neighbourhood region (ENR) and in
the Middle East and North Africa (MENA),
predominantly through the provision of
dedicated financing to businesses and
households via partnering with financial
institutions and direct financing.
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Marketing Material
About the GGF
History
Legal Form
Luxembourg-based specialized investment fund (SICAV-SIF)
Inception
December 2009
Current Investors
TA Facility Donors
Initiators
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About the GGF
GGF markets
Local offices
* This designation is without prejudice to positions on status, and is in line with UNSC 1244 and the ICJ Opinion on the
Kosovo Declaration of independence.
MENA
European Eastern
Neighbourhood
Southeast Europe
Regions the GGF Serves
Albania
Bosnia and Herzegovina
Croatia
Kosovo*
FYR Macedonia
Montenegro
Serbia
Turkey
Armenia
Azerbaijan
Georgia
Moldova
Ukraine
Egypt
Jordan
Lebanon
Morocco
Palestinian Territories
Tunisia
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Marketing Material
About the GGF
Governance Provides a Solid Foundation and Transparent Processes
General Shareholder Assembly
AUDITOR
Board of Directors
GENERAL SECRETARY
Investment Committee
DEPOSITARY AND
DOMICILIARY AGENT
FUND ADMINISTRATOR
INVESTMENT MANAGEMENT
INVESTMENT MANAGER
ADVISOR
TECHNICAL ADVISOR
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Marketing Material
About the GGF
Improving EE and RE via Partner Institutions with a broad spectrum of measures
Insulation Improvement:
often below EUR 1,000
Retail
Boiler Replacement:
typically between
EUR 2,000 – 5,000
Process Machinery
Replacement:
EUR 50,000 – 250,000
SME
Agri-equipment
Replacement:
EUR 15,000 – 250,000
Process Improvements:
often over EUR 1 million
Corporate
Renewable Energy
Projects:
up to EUR 10 million
Street Lighting:
up to EUR 10 million
Municipalities
District Heating:
up to EUR 10 million
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Marketing Material
About the GGF
Providing Direct Financing for Renewable Energy (RE) Projects
Targeted RE Technologies
 Hydro Power
 Wind farms
 Solar (thermal and photovoltaic)
 Biogas / Biomass (no food crop
replacement)
 Geothermal
One major criteria for the eligibility of
projects is their adherence to GGF's
environmental and social impact
requirements.
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Marketing Material
About the GGF
Technical Assistance Complements the Fund to Maximize Impact
The main principles of the Technical Assistance
Facility are:
 Support for the GGF‘s mission and strategic
direction
 Creation of synergy effects with investments
 Ensuring independence and sound
governance
 Adherence to principles of transparency
Fiduciary Agent
Governance Structure
Donors to the Technical Assistance
Facility
Technical Assistance Facility
Committee
Technical Assistance Manager
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02 Leveraging Donor Capital
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Leveraging Donor Capital
Flow of Funds - How GGF Investments Provide Impact
Donors / Investors
Funding
Dedicated Funding
Technical Assistance
Financial Institutions
Direct RE/EE Investments
EE/RE Loans
Households
Commerce
Industry
Agriculture
Technical Assistance
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Marketing Material
Leveraging Donor Capital
Tiered Structure Allows Tailored Risk/Return Profiles
Notes
EUR 54.9 million – 17%
Donors
Preliminary data as of 31 December 2016
Senior A Shares
EUR 195.0 million – 55%
Mezzanine B Shares
EUR 26.4 million - 6%
Risk
Development
Finance and
International
Financial
Institutions
Income
Private Investors
Junior C Shares
EUR 89.9 million –22%
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Leveraging Donor Capital
Allocation of Gains Through the Income Waterfall
Net available
income for
Distribution
Complementary Dividends
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Leveraging Donor Capital
C Shares’ Impact on the Fund, PI, and Sub-borrower Levels
ILLUSTRATIVE EXAMPLE
…
5 years
Fund-level leverage
Funding mobilized
PI-level leverage
Investments in PIs
Sub-borrower leverage
Investments in Target
Group
Repayments
re-invested
with the
Target Group
Repayments
re-invested
Additional IFI
& private
capital
Initial
investment in
PLIs
Initial funding
extended to
Target Group
New C Shares
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03 The GGF in Figures
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The GGF in Figures
Outstanding Investment Portfolio and Number of Partner Institutions (PIs)
In EUR million
Number of PIs
Portfolio
450.0
60
384.1
400.0
425.7
50
350.0
363.2
300.0
307.1
310.7
314.3
40
326.4
250.0
30
200.0
150.0
32
100.0
37
34
46
43
20
26
50.0
57.5
50.0
0.0
33
41
3
14
10
19
5
0
Q1
2010
2011
As of 31 December 2016
2012
2013
2014
2015
Q2
Q3
2016
Q4
Q1 (FC) Q2 (FC)
2017
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Marketing Material
The GGF in Figures
Portfolio Breakdown
Investment Portfolio Outstanding per Country
Turkey
Georgia
Serbia
Egypt
Croatia
Albania
FYR Macedonia
Tunisia
Armenia
Bosnia and Herzegovina
Azerbaijan
Moldova
Ukraine
Montenegro
Kosovo
29%
Projects
5%
15%
11%
10%
10%
9%
5%
3%
3%
2%
1%
1%
1%
1%
> 0%
0% 5% 10% 15% 20% 25% 30% 35%
As of 31 December 2016
Investment Portfolio Outstanding per Partner
Institution Type
Leasing
Companies
27%
Corporates
2%
Large Banks
36%
MCOs
1%
Small Banks
29%
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Marketing Material
The GGF in Figures
Impact Measurement and Monitoring
EE/RE Sub-Loans
Investee
Loan Terms and
Conditions
Core
banking
system
eSave tool
(provided by
the GGF)
Investor
Data
aggregation
and analysis
Integrated
sub-loan
data
reported
quarterly
EUR
MWh
Project Specific
Information
Finance in Motion
tCO2
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The GGF in Figures
Overall cumulative sub-loan disbursement rate of 94% and on-lending rate of 68%
Total
SEE
ENR-East
WB-6
20,935
15,910
5,025
10,890
Cumulative sub-loan disbursements
since inception
EUR 406,1
million
EUR 333.5
million
EUR 72.6
million
EUR 127.8
million
Energy savings (MWh/yr)
1,477,215
1,156,023
321,199
592,355
CO2 reduction (tCO2/yr)
381,183
311,288
69,894
178,764
As of Q3|2016
Number of borrowers
Note: PIs in ENR-South are still in ramp-up period
Measures financed since inception based on loans disbursed
Buildings - 30.5%
23.1%
27.2%
Improvements in processes, process related equipment - 27.2%
Use of RE for commercial energy generation - 23.1%
Energy service and supply business - 7.9%
Agri-equipment - 6.3%
7.9%
6.3%
30.5%
1.5%
2.4%
Use of RE by households and businesses - 2.4%
Vehicles - 1.5%
Complex heat supply and distribution systems - 0.9%
Lighting - 0.1%
EE: 74.5%
RE: 25.5%
Household devices - 0.0%
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Marketing Material
The GGF in Figures
Strong Technical Assistance Focused on Developing Partner Capacities
•
•
•
•
•
•
177 TA projects since inception with project
volume of EUR 8.3 million
GGF TAF projects since inception
Working with 46 Partner Institutions (or
potential PIs): 41 FIs + 5 NFIs
Committed TAF Fund Volume EUR 12.9
million
Overall funding needed 2017 – 2018: EUR 8
million, thereof EUR 3 million for ENR South
Development of an EE/RE Finance Manual
for GGF PIs
Individual TA for new PIs in Kosovo,
Montenegro and Egypt
15%
10%
52%
19%
4%
Capacity Development of FI’s
Capacity Development of NFI‘s
Impact Analysis & Energy Audits
Research & Analysis
Awareness Raising & Market Enabling
As of 24 November 2016
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Marketing Material
Thank you for your attention!
Contact: Lloyd Stevens, Phone: +49 (0) 69 271 035 113, E-Mail: [email protected]
Marketing Material
Disclaimer
The information in this document constitutes marketing material only and does not constitute investment, legal, tax or any other advice. It has been prepared
without regard to the individual financial and other circumstances of persons who receive it.
The Fund mentioned in this presentation is a specialized investment fund governed by Luxembourg law and is reserved for institutional, professional or other wellinformed investors as defined by Luxembourg law. The issue documents or the assets held in the Funds have, however, not been approved or disapproved by any
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60596 Frankfurt, Germany).
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without limitation, exchange rates, general developments in banking markets and regulations, interest rate benchmarks, and others. Actual developments could
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