Funding Database

Danish Climate Investment Fund (KIF)

The Danish Climate Investment Fund (KIF) offers risk capital and advice for climate investments in developing countries and emerging markets in Asia, Africa, Latin America and parts of Europe.

Go to fund Website

Geographical Focus

Nigeria, Ghana, Kenya, Egypt, South Africa

Technology/Sector Focus

  • Small Hydro
  • Geothermal
  • Wind
  • Solar
  • Biomass
Size of Investment
€2-50M
Target Return
12% net IRR
Total Fund Size
€180M
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.