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IFC Climate Catalyst Fund
Summary of Proposed Investment
This Summary of Proposed Investment is prepared and distributed to the public in advance of the IFC Board of Directors’ consideration of the proposed transaction. Its purpose is to enhance the transparency of IFC’s activities, and this document should not be construed as presuming the outcome of the Board decision. Board dates are estimates only.
IFC CATALYST FUND, LP
Private Equity/Venture Cap Fund - Sector
Date SPI disclosed
September 29, 2011
Projected board date
November 17, 2011
Invested: March 7, 2013
Signed: December 20, 2012
Approved: November 10, 2012
As part of IFC’s strategic focus on addressing adverse climate change across the emerging markets, IFC is proposing to invest in a to-be-established investment vehicle (“Climate Catalyst Fund”) that will mobilize additional capital for co-investment alongside IFC in private equity funds (“Climate Funds”) focused on low-carbon and climate-friendly projects and companies globally across the emerging markets. The objective of the Climate Catalyst Fund is to stimulate the development of Climate Funds and climate friendly projects and companies which are expected to play a key role in accelerating the growth of investment in renewable energy and other low-carbon solutions.
Project sponsor and major shareholders of project company
IFC will seed the Climate Catalyst Fund. Large global institutional investors are expected to invest alongside IFC. The Climate Catalyst Fund will be managed by IFC Asset Management Company, LLC (“AMC”), a wholly owned subsidiary of IFC. AMC mobilizes and manages third party funds for investment in developing and frontier markets. It was created in 2009 to expand the supply of long-term capital to these markets by accessing IFC’s global reach, investment approach and standards.
Total project cost and amount and nature of IFC's investment
IFC's investment will be 20% of total commitments made to the Climate Catalyst Fund subject to an overall cap of $75 million.
IFC investment as approved by Board
75 million (USD)
IFC Investment (million USD)
* These investment figures are indicative
Location of project and description of site
The domicile of the Climate Catalyst Fund will be determined upon completion of due diligence.
Anticipated development impact of the project
The project is expected to deliver strong development impact by: (i) stimulating the development of Climate Funds and climate friendly projects and companies which are expected to play a key role in accelerating the growth of investment in renewable energy and other low-carbon solutions; (ii) mobilizing the additional capital needed to help fill the investment gap caused by the reluctance of institutional investors to invest in Climate Funds and climate friendly projects; (iii) reducing GHG emission and creating other positive environmental impacts; (iv) promoting the robust, inclusive economic growth needed to improve the lives of people impacted by adverse climate change; (v) transferring technology, best practices (including IFC Performance Standards) and innovative business models; and (vi) raising awareness of the commercial attractiveness of investing in low-carbon and climate-friendly projects and companies, and helping institutional investors to learn about these sectors in emerging markets.
IFC's expected development contribution
IFC has a unique strength to develop and implement the Climate Catalyst Fund because of the combination of IFC's experience and track record in investing in emerging markets, climate related businesses and private equity funds. The AMC proivdes a unique platform through which the above strength is utilized for the management of third party funding.
Environmental and social issues - Category FI
IFC’s participation in Climate Catalyst Fund will be a Category FI project. IFC's E&S policies shall apply to the Climate Catalyst Fund and its investment activities. Portfolio investments of Climate Funds shall meet the requirements of IFC FI Exclusion List, applicable host country E&S laws and regulations and IFC Performance Standards (Applicable Performance Requirements). Each Climate Fund will be required to implement a social and environmental management system (SEMS) and maintain appropriate capacity, satisfactory to the Climate Catalyst Fund, to assess and manage the potential E&S risks associated with their investment activities consistent with the Applicable Performance Requirements.
For inquiries about the project, contact:
Reyaz A. Ahmad
IFC Asset Management Company
Tel: 1 202 473 7785
Chenggang Jerry Wu
Tel: 1 202 473 5946
For inquiries and comments about IFC, contact:
General IFC Inquiries
IFC Corporate Relations
2121 Pennsylvania Avenue, NW
Washington DC 20433
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