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NORDIC
ENVIRONMENT
FINANCE
CORPORATION
FINANCING INSTRUMENTS FOR
MUNICIPALITIES AND INDUSTRY
FinancingGreen Growth
NORWEP Frokostseminar om vannkraft25.2.2019
Amund Beitnes, Senior Investment Manager
NORDIC
ENVIRONMENT
FINANCE
CORPORATION
NEFCO in brief
● The Nordic Environment Finance Corporation (NEFCO) is an International
Financial Institution established by the Nordic Governments in 1990
● Helping to generate added value for the Nordics and the countries where we
operate
● Results-based green financing to small- and medium-sized projects with
demonstration value
● Investments and fund administration with a total value of EUR 500 million
● Projects financed in >60 countries with particular focus on Eastern
Europe, and the Baltic Sea, Barents and Arctic regions
● The first Nordic institution accredited by the Green Climate Fund
● Headquartered in Helsinki and representation in Ukraine and Russia
NORDIC
ENVIRONMENT
FINANCE
CORPORATION
Our Focus Areas
● We finance sustainable green
growth and climate projects
globally
● We focus on small and medium-
sized projects with
demonstration value,
replicability and scale-up
possibilities
● We make projects bankable by
providing risk capital, grants
and environmental verification
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NORDIC
ENVIRONMENT
FINANCE
CORPORATION
Investments in clean energy
For example, loans and equity
investments for the construction of wind
farms and solar power plants in Estonia,
Lithuania and Ukraine.
Private sector – loans and equity
NORDIC
ENVIRONMENT
FINANCE
CORPORATION
Public sector – loans and grants
Energy-efficiency in Ukraine
133 projects since 2010
79 municipalities
170,000 children benefitted
137 000tonnes of CO2
reduction p.a.
211schools
NORDIC
ENVIRONMENT
FINANCE
CORPORATION
NEFCO Investment Fund (IF)
● The main financing fund of NEFCO
● Investment Fund size is EUR 150 million
● Nordic ownership or interest
● Finances public / private projects
● Small and medium sized projects
● Flexible investment strategy, loan or equity
● Procurement of goods and services financed by NEFCO shall be open
and fair
● Annual financial and environmental reporting required
6
NORDIC
ENVIRONMENT
FINANCE
CORPORATION
Terms for the Investment Fund
● Commercial terms with equity, loans or export credits
● Nordic involvement is a requirement
● Exposure up to 5,000,000 per project
● NEFCO`s equity contribution can be up to 33% of the total
equity
● Total NEFCO loans up to 50% of the total project cost
● Maturity up to 10 years
● Exit for equity investments after 5-7 years
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NORDIC
ENVIRONMENT
FINANCE
CORPORATION
Support for green growth
475Creating
new jobs
annually
Feasibility study funding for Nordic SME’s
aiming at long term green investments outside the EU
Over 3,000 projects have been financed
since 1982. Each project creates 14 new jobs,
EUR 1 million in direct investments and
EUR 3 million in sales.
30 m€in foreign
investments
annually
Small and medium-sized companies– Nordic project fund Nopef
NORDIC
ENVIRONMENT
FINANCE
CORPORATION
Nopef grant funding for feasibility studies for internationalisation
• Funding for feasibility studies aiming at investments or
establishment of business activities outside the EU area
• Grants of up to 40% of the approved feasibility study
costs for a maximum amount of EUR 50,000
• Salaries, travel, consultants, legal,
• Market research, risk analysis, business plan
NORDIC
ENVIRONMENT
FINANCE
CORPORATION
Nopef grant project criteria
• Nordic SME´s with operation in the Nordic region and
• Commercially proven products or services
• Clearly defined and financially viable projects
• Investments and establishment of permanent business activities
• Total de minimis support received over a 3 year period not
exceeding EUR 200 000
• Positive environmental impact
NORDIC
ENVIRONMENT
FINANCE
CORPORATION
29
7
19
3
9
10
4
3
22
53
4
Nopef project portfolio – approx. 140active projects
11
4
2
2
3
2
2
2
2
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NORDIC
ENVIRONMENT
FINANCE
CORPORATION
CASE STUDY
Off-grid solar power solutions in Africa
• Kube Energy AS is a Norwegian provider of clean and affordable off-grid
solar power solutions to development and humanitarian organisations
operating in areas of Africa
• In 2017 Kube Energy started a feasibility study for an business
establishment in South Sudan for off-grid solar energy leasing solutions, as
an sustainable alternative to diesel powered generators
• Kube Energy has established local operations in South Sudan and is
implementing the first pilot project with the United Nations
• Kube Energy will consider applying for a license to install larger systems if
the market situation makes these types of installations likely. The company
is also at the final administrative stage of initiating a 2.2 MUSD million solar
project.
• The prospects for further growth in South Sudan are very good and 3MW of
projects have been added to the pipeline since the inception of the project
NORDIC
ENVIRONMENT
FINANCE
CORPORATION
CASE STUDY
Production of peat briquettes from coconut waste for cultivation sectorJiffy Products International AS
• Jiffy Products International AS is a leading worldwide supplier of
environmentally friendly propagation systems, hydroponic systems,
growing containers and substrates for the horticultural industry.
• Jiffy intended to establish presence in Philippines for the production of
coconut based peat, coir, pulp and other biomass starches. Jiffy uses
the 'pith' - a byproduct from Coconut fibre - which is normally
considered a waste problem - solving a local waste problem at the
same time.
• A subsidiary has been established with registered share capital. Jiffy
has identified a suitable area for production and signed a lease
agreement with the land owner, securing a production site in the
Davao region. Investments in production facilities and machinery will
be carried out during 2018.
NORDIC
ENVIRONMENT
FINANCE
CORPORATION
Contact information:
NOPEF
Mikael Reims
Senior Manager, Head of Origination and Communications
Telephone: +358 10 6180 670
Project finance
Amund Beitnes
Senior Investment Manager
Telephone: +358 10 618 0658
Mobile: +358 50 311 3684
