Geographical Focus
Nigeria, Ghana, Kenya, Egypt, South Africa
Technology/Sector Focus
- Small Hydro
- Geothermal
- Wind
- Solar
- Biomass
Size of Investment
Target Return
Total Fund Size
Fund Structure
General Fund Information
Type of Investment
Equity
Investors of Fund
Denmark
Fund Information
Size of Investment
€2-50M
Target Return
12% net IRR
Sample Investee
The Lake Turkana Wind Power project will be the largest wind park in Sub-Saharan Africa. The 300MW wind farm will produce around 20% of Kenya’s current installed electricity generating capacity at a very cost-efficient price and will replace fuel imports of approximately €120 million annually.
Additional Project Characteristics
The project must have a Danish company in partnership.
Additional FMC Info
Network/Partners
Nordic Power Partners
Location of Registration and HQ
Copenhagen, Denmark
Primary Contact Information For Developers
Jacob Klingemann
Investment Director
Tel: +45 33 63 75 28
Mob: +45 22 68 75 28
jkl@ifu.dk
Types of Financing
Equity
Minority stake 20%
Technical Assistance / Grants
TA available side by side
Debt Mezzanine
Mezzanine investments follow the same guidelines as equity investment, as long as it is below 10 years. IFU customizes each investment.
Requirements for Financing
Project Requirements
Renewable energy generation in all technologies. There must be a Danish company involved, either in the developer or the project.
CO-Funding Requirements
Prefer a consortium of share-holders so there will be a shared due diligence, with an emphasis on local investor industrial co-investor or local financial institution.
Target Impact
KIF measures impact based IFC guidelines.
Due Diligence Requirements
The due diligence will review the developer’s reputation, evaluate risk, track record, country assessment, including PPAs and legal enforcement, review of off-taker, management skills and place a large emphasis on the ability to execute based on past performance. Early stage development company can approach KIF without documentation, however they will need more hands on approach and JV, KIF may suggest that the development company work together with Nordic Power Partners (PV and wind), to increase track record. Late stages need to have PPA and licensing intact.
Detailed Description Of Funding Process Procedure
The due diligence process follows 2 stages: Initial screening focused on partner country and general merit of the of project. First stage is about a month and ends in approval in board meeting. The second stage is proving due diligence of all the information, including a site visit. The full process can take 6-12 months until disbursement.