The principal sponsor for SACEF is GEF Management Corporation (“GEF”), a US based company that has been a dedicated investor in the energy, environment and related sectors since 1990.

The Project is a proposed equity commitment of up to $20 million to SACEF, not to exceed 20% of the Fund’s total commitments.

20.0 million (USD)

Product Line	IFC Investment (million USD)
Risk Management
Guarantee
Loan
Equity	20.0

* These investment figures are indicative

The Fund is an Alberta, Canada Limited Partnership and will be managed by South Asia Clean Energy Management, a company organized under the laws of Mauritius. The Fund Manager will be advised by a core team of investment professionals who will be based in Mumbai, India, and will principally target companies located in India, but will look to Sri Lanka, Bangladesh, and Nepal for opportunities and may invest up to 25% in companies domiciled in other emerging Asian economies.

IFC expects the Project to have the following development impact:

- Growth in employment: SACEF is expected to invest in growth companies that will generate employment opportunities in the Region.
- Clean Energy Investing: The Fund’s investees are expected to contribute to clean energy generation, transmission and distribution, energy efficiency and environmental protection.
- Demonstration Effect: A successful outcome of the Fund will demonstrate commercial proof of concept in clean energy investing in South Asia.

IFC expects to make the following development contributions:

- Share deal experience in South Asia, particularly outside of India where the Fund Manager has less experience.
- Provide the Fund Manager with guidance on improving corporate governance, and environment & social standards of its portfolio companies.

This project has been classified as a Category FI project according to IFC’s Environmental and Social Review Procedure.

During appraisal, IFC will analyze the fund’s expected portfolio and sectors of investment and determine the Applicable Performance Requirements if any, that would include a combination of:

- The IFC FI Exclusion List and/or
- The applicable National Social and Environmental Laws and regulations and/or
- The IFC Performance Standards

IFC will also review, if required, the capacity of the fund to manage social and environmental risks and to establish and maintain a Social & Environmental Management System (SEMS). IFC may suggest Supplemental Actions to address any gaps in the SEMS if required.

The fund manager will be required to:

- Develop an, or upgrade, if necessary, any existing SEMS, prior to disbursement to the satisfaction of IFC,
- Identify responsible, qualified persons to manage and implement the SEMS,
- Commit to implement the SEMS to ensure that its investments/activities are in compliance with the Applicable Performance Requirements,
- Submit a periodic report to IFC as per a format to be provided by IFC.

IFC will review the implementation and performance of the Fund’s SEMS for the first few projects, prior to the Fund’s investment, to ensure that the Fund’s SEMS is robust. For all Category A subprojects the Fund will need to satisfy IFC that the subprojects are in compliance with the Performance Standards or have a satisfactory action plan to bring the subprojects in to compliance within a reasonable time frame prior to investing.