91ΒιΆΉΣ³»­΄«Γ½

Objective

Launched and managed by the Climate 91ΒιΆΉΣ³»­΄«Γ½ Managers (CFM), CI2 is a follow-up fund to Climate Investor One (CIO), launched in 2017 with an investment strategy focusing on renewable energy projects. NDF participated in the second closing of CIO with a EUR 5 million returnable grant to the Development 91ΒιΆΉΣ³»­΄«Γ½, which is mandated in developing renewable energy projects up to the construction phase. Based on the proven blended finance fund architecture of CIO, CI2 is being set up with the twin goals of accelerating project development and mobilising commercial and institutional capital at scale into the selected sectors in developing countries.

The mission of CI2 is to invest in infrastructure necessary to enable communities to adapt and become resilient to the effects of climate change. The objective is to invest in the development and construction of private infrastructure project companies in low- and middle-income countries in Africa, Asia and Latin America. To fulfil CI2’s mission, the selection of the sectors of water, sanitation and oceans is based on their relevance and contribution potential to mitigating and adapting to the impacts of climate change. Plus, all three sectors are established in many developing countries and represent sizeable markets with significant investment gaps.

CI2 is established as three separate but interlinked funds - the Development 91ΒιΆΉΣ³»­΄«Γ½, the Construction Equity 91ΒιΆΉΣ³»­΄«Γ½ and the Refinancing 91ΒιΆΉΣ³»­΄«Γ½ - to provide bespoke financing for each stage of an infrastructure project’s lifecycle. The Development 91ΒιΆΉΣ³»­΄«Γ½ is financed by donorbased grant commitments, which are used to finance the development phase of infrastructure projects. The Construction Equity 91ΒιΆΉΣ³»­΄«Γ½ provides equity investment instruments to the construction phase of projects. Equity commitments to the Construction Equity 91ΒιΆΉΣ³»­΄«Γ½ are allocated into three individual tiers (Tiers 1, 2 and 3), which differ in the risk-return profile provided to investors. Tier 1 is the junior tranche and it is intended to mitigate risks for commercial and institutional investors in Tiers 2 and Tier 3

The following outputs are expected based on the CI2 impact projections for the 20-year 91ΒιΆΉΣ³»­΄«Γ½ Term provided by CFM:

~14 million people supplied with safe drinking water

~4 million people provided with sanitation

~3.5 million tons of CO2 emissions avoided annually

~USD 2.5 billion private sector funds catalysed at construction phase

Financing

NDF commitment to CI2 includes a USD 5 million returnable grant to the Development 91ΒιΆΉΣ³»­΄«Γ½ and a USD 10 million junior equity contribution to the Tier 1 of the Construction Equity 91ΒιΆΉΣ³»­΄«Γ½.

NDF contact

Program Manager Michelle Voon
E-mail: michelle.voon@ndf.int