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Climate Investor One (CIO) Case Study

Convergence

Climate Investor One (CIO) is an $850 million blended vehicle designed to accelerate the development, construction, and implementation of renewable energy infrastructure projects in emerging markets. Comprised of three inter-linked investment funds, CIO provides fit-for-purpose financing across the project finance lifecycle. The Fund aims to support ~30 projects over its 15-year investment term and will target a variety of renewable energy technologies.

CIO’s pioneering design addresses inherent challenges associated with project finance in developing countries. By using a three-phase sequential financing approach to align project capital needs with the appropriate investors, CIO maximizes private investment, while also ensuring access to finance for early-stage renewable energy projects. The Fund provides a replicable model to increase capital flows to the renewable energy sector in developing countries and demonstrates a series of insights to facilitate this growth:

• Aggregation structures are critical to attract institutional investors to developing countries at scale • Aligning investment instruments to the distinct project risk periods in the project lifecycle lowers the cost of capital and accelerates timelines • Balancing innovation with proven approaches can scale private investment to alternative sectors • Flexibility in transaction design can prove critical to a successful fundraise • Blended finance plays a pivotal role in introducing private investors to new sectors, regions, and asset classes

    Date
    09 Dec 21
    Type
    Convergence, climate, featured
    Region Focus
    East Asia and Pacific, Latin America & the Caribbean, Sub-Saharan Africa
    Sector Focus
    Energy
    Sub-Sector Focus
    Renewable Energy