The Covid-19 crisis is affecting clean energy companies and projects, and the implications are only starting to materialise. What is clear at this point is that there is a need to assess the situation and existing business plans, restructure financing arrangements, and access additional funds, including relief funds.
The GET.invest Finance Catalyst operates a dedicated Covid-19 window for acute and critical finance-related problems caused by the Covid-19 crisis, focusing on business-continuity support to companies that are already in operation. In contrast to the Finance Catalyst’s regular, long-term support for clean energy businesses, the Covid-19 window aims to provide short-term and accelerated advisory to analyse and, to the extent possible, help address such problems. Our advisor team is fully up to date with emerging relief support efforts and can assist clients in finding the right solutions.
Support is available in the areas of strategy including business continuity, business and financial structuring as well as financial modelling, access to finance support, and transaction advisory. The examples below show different advisory topics, but are not conclusive:
Investment Strategy, “birds’-eye view” advice on how to deal with the crisis:
Analysis of current financing structure; analysis of current operational financial situation (cash flow, funding); due diligence on financial and operational situation; financial forecasting support; information on changing market conditions, finance environment and regulations; strategic advice on financial sustainability.
Structuring Support on how to structure, and if necessary, restructure the project or company, in terms of business model, management, and financial models:
Connecting with the wider sector to share resources and operational solutions, and sharing lessons learned from the Finance Catalyst experience; assistance with review of business planning, in light of financial consequences from Covid-19; assistance in understanding respective legal positions with regards to current financial obligations of the company in the face of Covid-19; in-company Covid-19 response project management, in particular staff retention, furlough or layoff; financial (re)modelling support to inform adjustments to the Covid-19 situation.
Access to Finance Support to identifying appropriate and available financing sources and their modalities:
Information on and introductions to available relief / emergency funds and their modalities; advice on which type of emergency / relief funding is most appropriate and desirable, and support in applications; matching funding needs with available funding where appropriate, as far as achievable.
Transaction Support in negotiations with key stakeholders, including financiers (e.g. on restructuring) or public agencies such as regulators:
Assistance in managing debt service relief approach, loan restructuring and negotiation; assistance in managing creditor relief approach and negotiation; support to negotiations with in-country actors, such as regulatory or other relevant governmental agencies, banking regulators; identifying areas for further legal evaluation (for example, applicability of Force Majeure clauses in EPC agreements).
To ensure the support under the Covid-19 window has the biggest impact with the resources available, GET.invest will screen applicants on the basis of specific eligibility criteria:
- Applicants must be situated in sub-Saharan Africa or in the Caribbean.
- Applicants must be existing companies with a minimum of two years in operation, with financial reports available as an adequate starting point for the support.
- Only projects and businesses with a cumulative generation capacity of less than 50 MW or aggregated investments up to EUR 70 million are eligible. Supported models may comprise electricity generation, electricity distribution (in the case of mini-grids and stand-alone systems), mechanical energy and industrial / process heat or cooling, as well as clean cooking. Transmission projects or biofuels are not eligible.
- The business or project scope must primarily concern renewable energy. Hybrid systems with a reasonable share of renewable generation capacity are also eligible.
- Applicants must show: (a) the equivalent of EUR 100,000 of turnover over the past 12 months as a proxy to justify the allocation of individual coaches and the associated cost; (b) a minimum of 5 staff employed (salary or results-based) as a proxy for the job impact of the crisis, and as an indicator for the cash needs of the company; (c) that the business had a sustainable funding plan at the end of February until 1 May 2020 (i.e. no funding gap before 1 May 2020).
- Applicants need to be able to articulate how the Covid-19 crisis has affected the company’s operations and / or core financial metrics, and that they have a demonstrated need for emergency funding in the next six months or for restructuring of existing obligations.
- Applicants need to have a reference from domestic or international investors or financiers with an existing agreement or in advanced stages of negotiation (contacts to be provided in the application form).
GET.invest will reserve the right to select and prioritise applications in a simplified process on the basis of these criteria. Applicants that do not qualify for advisory support can still benefit from webinar formats and other tools that will be published on our Covid-19 response page (soon to be published).
How to apply
To apply for support, click on the ‘Apply-here’ button below. You will be directed to our application portal climate-invest.fluxx.io where you will need to register first. The application portal runs on a secure server specifically for the Finance Catalyst activities of GET.invest. All information submitted during the application process will be treated confidentially. The application is short and simple. Applications will be reviewed in an accelerated procedure of not more than one week.