The Sponsor is an independent alternative energy focused investment management firm incorporated as a limited liability company in the USA. It specializes in clean and renewable energy, clean technologies, climate change and environment, and low-carbon infrastructure.

The Fund size is US$150 million, and can go up to US$250 million. IFC proposed to make an equity commitment of up to US$20 million, 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 General Partner of the Fund is a Delaware limited liability company, and the Manager is also a Delaware limited liability company, set up separately to be the Fund Manager (the “Manager”). The Fund management team will be located in Mexico, Brazil and New York. The Fund will invest in Latin America with a focus on Brazil, Mexico, Peru, Colombia and Central America.

(i) Reduction of CO2 and other GHGs: The Fund will invest in renewable energy and clean technology projects contributing to a reduction in carbon emissions; and (ii) Demonstration Effects: The Project will strengthen investees both from a financial and governance perspective and help them scale up their operations thus making them attractive targets for investment and acquisition. It would demonstrate the business case for clean technology projects and encourage private investors to invest in this sector.

(i) IFC will play a catalytic role in encouraging the participation of other investors including both IFIs and private sector investors at a time when fundraising is still difficult; (ii) IFC will provide critical market knowledge, contacts and support to the Fund from its experience in renewable and clean energy projects; (iii) IFC will help the fund manager structure the Fund with best practice fund structure, terms, governance and E&S standards; and (iv) IFC will be able to provide both additional equity and debt to co-investments with the Fund as well as technical assistance for investee companies if needed.

The project has been classified as a Category FI project. The proposed portfolio involves investments in sectors with potentially high environmental and social impacts. The main E&S risk of this project is that these impacts are not adequately identified and managed. Sub-projects financed by the fund will need to comply with IFC FI Exclusion List, the applicable host country E&S laws and regulations, and the IFC Performance Standards (the Applicable Performance Requirements).

During appraisal, IFC will assess the potential E&S risks associated with the fund''s expected portfolio and sectors of investment, and will review the fund manager''s capacity to manage such E&S risks and to establish and maintain a social and 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 or upgrade a SEMS, prior to disbursement to the satisfaction of IFC and commit to implement the SEMS to ensure that its investments/activities are in compliance with the Applicable Performance Requirements; identify responsible, qualified persons to manage and implement the SEMS; and submit a periodic report to IFC.
IFC will review the implementation and performance of the fund''s SEMS for the first few projects and all Category A projects prior to the fund''s investment, to ensure the fund''s SEMS is adequate to assess and manage E&S risks.