Enabling Energy Finance:
Green for Growth Fund, Southeast Europe
Energy Efficiency (EE) and Renewable Energy (RE)
Agenda Panel 4, Istanbul, 23rd November 2012
Mr. Peter Coveliers - Chairman of the Green for Growth Fund (GGF) Investment Committee
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Donors and Shareholders
Shareholders
TA Facility Donors
Initiating Shareholders
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Committed Fund Volume: ̴ EUR 191 mil
Prospective Fund Volume over the next five years: EUR 420 mil
Domicile: Luxembourg SICAV-SIF
First closing: December 17 2009
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2
Governance Structure
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3
GGF Target Region
Finance in Motion office
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4
Objectives and Instruments
Objectives
Instruments
 Minimum 20% reduction in energy
consumption
 Medium to long-term senior loans
 Subordinated loans
 Minimum 20% reduction in CO2 emissions
 Promotion of renewable energy
 Letters of credit
 Guarantees
 Mezzanine debt instruments
Partners
 Local debt securities
 Financial Institutions
 Equity
 Non-Financial Institutions (project
finance)
 Technical Assistance support
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5
Fund Performance
160
60
140
50
120
40
100
80
30
60
20
40
10
20
0
Number of TA projects
EUR million in Outstanding Portfolio
GGF’s three year investment, in building its capacities and reputation in the
region, is paying off in the form of portfolio growth and successful TA projects
0
Dec-10
Mar-11
Jun-11
Sep-11
Dec-11
Mar-12
Jun-12
Sep-12
Dec-12*
* Projected Values
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6
Capital Structure - Overview
As a public-private partnership (PPP),
GGF can leverage donor funds, in the
form of first-loss junior C shares, and IFI
funds, in the form of mezzanine B shares,
to enable flow of private capital, into
senior A shares and notes.
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How can a Public-Private Partnership Help?
Guiding Principles of a new PPP structure
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Donor support a limited and valuable resource
Complimentarily – address underserved market segments
Additionality – work hand in hand with existing programs
“Crowd-in” private investors for demonstration effects
Address the larger ecosystem with a multi-level approach
Non-distortion – work with already functioning markets
Double bottom line
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PPP in Practice
Enabling and Enhancing Private Investment
Private
Investors
Banks
PROJECT
SPV
Equity
Mezzanine
Senior Debt
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Technical Assistance
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GGF Technical Assistance Facility (TAF)
Guiding principles and mission of the TAF
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TA Facility Donors
Support the Fund‘s mission and strategic direction
Produce synergy effects with investments
Ensure independence
Adhere to principles of transparency
The TAF is meant to foster the development activity of the GGF
and – inter alia – to assist partner institutions (PIs) in their
development in the area of EE and RE toward the achievement of
the Fund‘s mission.
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11
Key Figures
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56 TA projects under management
TA measures realized in 2011 in SEE
by % of projects
11%
Volume of projects under
management: EUR 3.5 mil
Working with 30 Partner Institutions
(or potential PIs): 26 FIs + 4 NFIs
33%
56%
Utilizing 19 different service providers
and consulting companies
Committed TAF Fund Volume EUR 7.5
mil
TA measures approved in 2012 in
SEE and ENR
by % of projects
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The Role of Technical Assistance
Supporting the Fund‘s Mission
Private
Investors
Banks
PROJECT
SPV
Technical
Assistance
Equity
Mezzanine
Senior Debt
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Thank you for your attention!
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