Climate Investor One (CIO) [NDF C111]
Climate Investor One (CIO) is a “whole-of-life” financing facility mandated with delivering renewable energy infrastructure projects in Africa, Asia and Latin America. The main objective of CIO is to contribute in a significant manner to global climate change mitigation efforts by financing profitable and sustainable renewable energy projects in developing countries.
Multiple regions
Climate Investor One (CIO)
Ref. NDF C111
Partner Agency: FMO, The Netherlands Development Finance Company
Implementing Agency: Climate Fund Managers
NDF financing: EUR 5 million
Project Period: 2018 –2037
Project Objective
The founding premise of CIO is the understanding that the capital requirements of renewable energy projects vary between different stages of a project’s lifecycle. CIO contributes to the development, construction and operational phases of a project lifecycle through three distinct but inter-linking funds, namely the Development Fund, the Construction Equity Fund and the Refinancing Fund. CIO’s design is based on a blended structure that strategically offers investment opportunities to a wide range of investors with varying risk-return profiles and mandates, from public donors to commercial and institutional investors.
After two successfully completed Closings, CIO has secured commitments from donors, development finance institutions, pension funds and commercial investors. NDF will participate in CIO’s third close.
CIO expedites the delivery of renewable energy by offering adequate financing for each stage of the project lifecycle, reducing complexity at project level and improving the likelihood of successful implementation. CIO’s concept and expected impact relies on the active recycling of capital throughout the 20-year Fund Term.
Expected Outcomes
CIO’s impact is measured across four dimensions: generated energy capacity, GHG emissions avoided, people reached and jobs created. During the 20-year Fund Term, CIO’s expected impacts include:
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renewable energy projects leading to ~1,100 MW of additional capacity;
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GHG emissions avoided: 1.2 million tons p.a. of CO2 equivalent;
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Number of people served: 7 million; and
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Jobs created: 10,000 jobs.
Financing
NDF’s Board of Directors approved financing in the form of a reimbursable grant of EUR 5 million to CIO’s Development Fund. Other Donors to the Development Fund include the Directorate-General for International Cooperation of the Netherlands, the European Union and USAID.
NDF Contact
Program Manager Michelle Voon
E-mail: michelle.voon@ndf.int
