Development Finance Funds SWITCH to Green Coordination Meeting
Finance in Motion is an impact asset manager that offers a range of services including investment management, risk management, technical assistance, and fund management. The organization has a regional presence in target countries with and without local offices. They provide full fund management services and are dedicated to responsible finance, social impact, and environmental sustainability. Learn about their funds, key figures, and stable expansion in challenging environments.
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Development Finance Funds SWITCH to Green coordination meeting Brussels 10 October 2017
About Finance in Motion A dedicated impact asset manager Impact asset management Social impact Environmental impact Responsible finance Investments (equity/debt, direct/via FIs Technical Assistance (individual, sector, studies) PPP Economically sustainable Long term value Full range of services Local presence Structures 2
About Finance in Motion Regional presence Target countries with local office Target countries without local office Additional presence 3
About Finance in Motion Full range of fund management services Investment Management Risk General Fund Management Technical Assistance Management Management Management of TA facility Fund raising Designing TA projects Selecting consultants Steering implementation Conceptualizing and managing development impact and sector studies Investment and impact strategy Product development Country assessment Investment origination Monitoring and reporting of investment performance Monitoring and reporting of impact E&S Due diligence Internal rating Monitoring of portfolio and market risks Portfolio management (limit systems) Restructuring and work-out Concept development Fund structuring Fund raising Market intelligence and research Asset-liability management Treasury Transaction management MIS External relations Legal Compliance 4
About the Funds Our mandates 5
About the Funds Key figures in a nutshell Senior Debt EUR 1.25 bn 35 investors Committed capital EUR 1.8 bn Working with Term deposits EUR 26.5 mn Outstanding portfolio EUR 1.4 bn Cumulative amount EUR 3.18 bn 106 Partner Institutions Equity EUR 9.7 mn Investments made Countries of operation 25 Sub-debt EUR 154.3 mn Number 512 All figures as of 30 June 2017 6
About the Funds Stable expansion despite of challenging environments Number of Partner Institutions Committed capital Cumulative investments made 2,000 120 3,200 1,800 2,800 100 1,600 2,400 1,400 80 2,000 1,200 1,000 60 1,600 800 1,200 EUR million 40 600 800 400 20 400 200 0 0 0 2010 2009 2011 2012 2013 2014 2015 2016 2017 2009 2010 2011 2012 2013 2014 2015 2016 2017 EFSE GGF SANAD eco.business All All figures as of 31 March 2017 unless otherwise mentioned 7
About the Funds Shareholders and Investors Development Finance Institution Donor Agencies Private Institutional Investors 100_eu-logo Additional private sector Investors participate via: DEFRA 8
About the Funds EFSE s economic and development performance since 2005 Development results Economic results Cumulative investments EUR 2.4 bn Target dividends of A&B Shares exceeded on every year since inception Financial institutions reached > 100 NAV increase of C Shares (public investors tranches) Cumulative amount of sub- loans to final borrowers > EUR 45.4 mn EUR 6 billion Realized capital losses since 20017 ca. EUR 700,000 Number of MSEs reached 843,000 Private capital leverage EUR 521 mn Number of households reached 44,000 EFSE s own TA contribution EUR 12.5 mn TA projects 358 TA volume > EUR 17 mn Jobs created/maintained ca 2.3 mn 9
The eco.business Fund Mission Fisheries and aquaculture Agriculture Promote business practices that contribute to conservation, to the sustainable use of natural resources, mitigate climate change and adapt to its impacts in Latin America and the Caribbean. biodiversity and to Priority sectors Forestry Tourism 10
The eco.business Fund Providing Investment and Technical Assistance Direct Investments (max. 15% of outstanding portfolio) Investors Local Partner institutions1) Target Group Dedicated Financing Funding Sponsors Sponsoring Technical Assistance 1) Commercial banks, microfinance institutions, leasing companies, etc. 11
The eco.business Fund Capital Structure Private investors: ASN Bank, Calvert Foundation, Conservation International, Finance in Motion GLS Bank Senior Notes Income Subordinated Notes IFI/DFI investors: FMO, KfW, OeEB Risk Senior Shares Public investors: EU, BMZ, DEFRA Junior Shares 12
The eco.business Fund Types of Investments Direct Financing (max. 15% of outstanding portfolio) Type of partners High-impact projects/businesses in the target countries Investments via Financial Institutions Type of partners Strong institutions with the willingness and capacity to reach the target group Benefits Larger scale and efficiency through the use of existing/enhanced local infrastructure Help to make biodiversity finance a mainstream product Limitation of the credit risk to partner institution Benefits Direct support of the target group through flagship projects High potential for replication Instruments Debt vehicles with different levels of subordination and flexible features to better serve the business cycle of clients Instruments Mostly senior debt and in select cases subordinated debt 13
The eco.business Fund Investments via financial institutions Use of funds Final borrowers must meet at least one of the following conditions: 1. Certified producers The final borrower has to hold one of 21 certifications for sustainable production approved by the Fund, including: 2. Green list activities Funding must be for activities included in a standard list of specific uses that have a significant positive impact on conservation, such as: Purchase and installation of water-saving drip or micro-sprinkler irrigation systems Renewal or establishment of cocoa plantations and shade-grown coffee under agroforestry systems Financing infrastructure and equipment required to produce compost and organic fertilizers Financing water filtration systems to promote water purification and soil quality 3. Non-standardized measures Selected projects with a high impact on both the biodiversity conservation and sustainable use of natural resources 14
The eco.business Development Facility The Fund s Technical Assistance Vehicle Main objectives : Sponsors Sponsors I. Support the Fund s mission and strategy II. Enhance the Fund s impact III. Create of synergies with investments IV. Contribute to a conducive environment for sustainable businesses DF Committee Fiduciary account DF Management Fiduciary Agent Projects 15
The eco.business Development Facility Types of Technical Assistance For financial institutions For end-borrowers Capacity building and awareness raising for sustainable lending Supporting the adoption of sustainable practices or conversion into sustainable businesses practices Sector Activities R&D, Impact Assessment Provide intelligence for the Fund and estimate its impact Studies, raising awareness, sector events 16
