CIO, launched in partnership between FMO, the Dutch Development Bank, and Phoenix InfraWorks, is targeted at the delivery of renewable energy projects in developing markets throughout Africa, Asia and Latin America. Comprising three separate but interlinked financing facilities , CIO is tailored to provide end to end financing for each phase of the projects’ lifecycle: development, construction and operations.
Following the first close of USD 412 million on the 23rd of June 2017, CIO continues to build momentum in successfully onboarding the European Union (EU) as a donor to CIO and MP Pensjon of Norway as a commercial investor in CIO for a combined total close of USD 50 million. Head of Capital Raising and Business Development at CFM, Mr. Georges Beukering said;
‘An end of year second close of USD 50 million caps off what has already been a strong 2017 for Climate Fund Managers. With two meaningful closes, Climate Investor One demonstrates that blended finance implemented correctly has an enormous potential for climate finance and strong appeal for institutional investors. We are very pleased to include the EU and MP Pensjon in the CIO investor base that continues to promote climate responsible and sustainable investing in developing markets.’
In the build up to this second close, CFM were advised by DNB Markets. Other advisors include Clifford Chance LLP (legal and tax), PwC (audit) and Vistra (back office).
The EU support of CIO forms part of a wider commitment to sustainable development and climate change mitigation, with the aim to encourage further investment in the EU’s partner countries across Africa. Support to CIO and similar initiatives are part of a broader EU strategy to promote private investments in sustainable energy, climate change mitigation and other development related areas contributing to inclusive growth, job creation, and enhanced electrification. The new EU External Investment Plan (EIP) with its "Sustainable Energy and Connectivity" investment window and ElectriFI have been set up by the EU precisely for this purpose.
CIO seeks to deliver in excess of 1,100 (MW) of new additional capacity, producing 3,200 (GWh/year) of affordable clean electricity to approximately 7 million people. In addition CIO will generate more than 10,000 jobs and avoid annually approximately 1.8 million tons of CO2 , equating to removing approximately 350,000 passenger cars off the road.