GCPF ANNUAL REPORT 2019 · Nam A Bank Vietnam Household appliances and two wheelers 7.2 March 2020 95.5 7,448 7.08 % 191,243,601 2.0 Off Grid Electric Tanzania Off-grid solar home

GCPF ANNUAL REPORT

2019

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>> CONTENTS

GCPF ANNUAL REPORT 2019

The Global Climate Partnership Fund 04Highlights 2019 05Investment universe 06Investment portfolio 08Energy and CO2 emission reductions 10Partner institutions 12Funding situation 16Technical Assistance 18Fund governance 20Investment team 22Financial statements 24

Claudia Arce, Chairperson of the Board

In 2019, the Global Climate Partnership Fund celebrated 10 years of pioneering climate finance, supported by the following facts:

IMPACT: With climate change mitigation as its key objective, CO2 emission reduc-tion is one of the Fund's key performance indicators. Projects financed in 2019 alone accounted for 4.4 million t of expected lifetime CO2 emission reduction, bringing the total to 17.2 million t, a 34 % increase compared to 2018.

SCALE: The Fund's invested portfolio continued to grow, ending the year at USD 578 million.

OUTREACH: Since the Fund’s inception, partner institutions have disbursed a cumula-tive amount of USD 795 million through 74,474 sub-loans, a 36 % increase over 2018.

DIVERSIFICATION: While growing, GCPF further diversified its portfolio in terms of number of partners, asset classes and loan currencies. In the course of 2019, five new partner institutions were added to the port-folio, which now includes 38 counterparties in 23 countries.

OFFERING: In 2019, the Fund continued to increase its share of non-USD-denominated loans from 4 % to 9 %. The strongest increases came from the exposures to the Peruvian Sol (PEN) and Indian rupee (INR).

KNOW-HOW TRANSFER: Adding value through Technical Assistance is one of GCPF’s main differentiators. In 2019, the Fund's Technical Assistance Facility launched 56 new projects to support partner institutions with know-how and technical support, thus continuing to develop and strengthen relationships with partner institutions.

All of this demonstrates the Fund's ability to adapt to the demands of the market and its responsiveness to changing environments.

3

“Ten years after GCPF’s inception, we are proud to see that the Fund has strongly contributed to strengthen-ing climate investments in small and medium-sized companies in emerging economies. We look forward to further expanding the portfolio, delivering even more impact in the process.”

THE GLOBAL CLIMATE PARTNERSHIP FUND >> 2019

17.2 m tTotal expected lifetime

CO2 emission reduction for projects financed since inception of the Fund

USD 578 minvested capital

38partner institutions

74,474 sub-loans disbursed

by partner institutions since

inception

23investment countries

56Technical Assistance

projects initiated

4

HIGHLIGHTS >> 2019

17.2 million t of lifetime CO2 emission reductionThe total expected lifetime CO2 emission reduction for all projects financed by the Fund since inception reached 17.2 million t, more than the annual emissions of a country like Mongolia (16.8 million t CO2 / year). In the same period, 175 MW of new renewa-ble energy capacity was added, generating the equivalent to the energy consumption of more than 35,000 European homes.

USD 137 million disbursedThe Fund disbursed USD 137 million to 15 new or existing partners. The portfolio grew from USD 504 million at the end of 2018 to USD 578 million at the end of 2019. With repayments amounting to USD 63 million, the net portfolio growth was USD 74 million.

Increased diversificationThe Fund added five new partner institu-tions to the portfolio: Banco Atlántida in El Salvador; Electronica Finance Ltd. and Roserve, both in India; TP Bank in Viet-nam; and Greenlight Planet, which is incor-porated in the US, but has operations in India and Sub-Saharan Africa. At the same time, Ukreximbank, a Ukrainian financial institution that has been operating in a very difficult environment over the last few years, fully repaid its USD 30 million loan

in early 2019, and GCPF’s South African counterparty Cronimet repaid its loan ahead of time in 2019 (due in 2020).

Healthy funding baseDuring 2019, the Fund raised new Notes amounting to USD 37 million from exist-ing and new investors. The new investors included Netherlands-based Democracy & Media Foundation with EUR 2 million and an institutional investor with USD 15 mil-lion. Of the total investor capital of approx-imately USD 590 million, USD 150 million in A and B shares evenly split between IFC and KfW Entwicklungsbank are payable in 2020. Both shareholders are in their final approval process to roll over their invest-ments.

A record year for Technical Assistance2019 was another landmark year for the GCPF Technical Asssistance (TA) Facility. TA was strategically leveraged to further build industry knowledge and support financial institutions in identifying market opportunities, as well as to consolidate and expand the worldwide green lending com-munity. For the first time since the Facility’s inception, the target of USD 2 million of disbursements was exceeded. 56 new TA projects were initiated in 2019 for a total of USD 3.5 million.

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EUROPE / AFRICA

Georgia TBC Bank BasisBank JSC

Armenia Ameria Bank

Turkey Şekerbank

TanzaniaMobisolOff Grid Electric

UgandaSolarNow

GhanaRedavia

KenyaGreen Light Planet

NamibiaAloe / RMB

ASIA Mongolia XacBank

Bangladesh The City Bank Southeast Bank

India SREI Infrastructure Finance Hodson Renewable Electronica Ratnakar Bank Roserve

Vietnam Nam A Bank TP Bank

Sri Lanka Hatton National Bank Pan Asia Bank

Cambodia Prasac LOLC Cambodia

Singapore* Cleantech Solar

15

13

9

30

30

30

10.5

15

17

504769 30

37

6

INVESTMENT UNIVERSE >> USD 578 M

INVESTED IN 23 COUNTRIES GLOBALLY

Figures in USD m

* Corporate loan to a Singapore holding company. Most of the underlying projects are in Cambodia, the Philippines, Malaysia, and Thailand

LATIN AMERICA

HondurasBanco Atlantida

El Salvador Banco Atlantida SLV Banco Davivienda

Dominican RepublicBanco Promerica DR

NicaraguaBanpro

Costa RicaBanco Promerica CR

Panama CiFiGlobal Bank

EcuadorBanco PichinchaBanco ProCredit

PeruAcceso Crediticio

20

1515

20 3935

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INVESTMENT PORTFOLIODisbursed investments by partner institution Outstanding amount (USD m)

Şekerbank 30 Ratnakar Bank 20 Electronica Finance Ltd 10

SREI Infrastructure Finance 30 SouthEast Bank 20 Banco Atlantida SLV 10

The City Bank 30 TP Bank 20 Greenlight Planet 10

Pan Asia Bank 27 Prasac 17 Nam A Bank 10

Banco Davivienda 26 Cleantech Solar 17 Roserve 6

CiFi 26 Ameriabank 15 Mobisol 6

TBC Bank 25 Banco Atlantida 15 Banco Promerica DR 5

Acceso Crediticio 20 Banco Pichincha 15 Basis Bank JSC 5

Banco ProCredit 20 BanPro 15 Off Grid Electric 3

Banco Promerica CR 20 XacBank 15 Hodson Renewable 2

Chase Bank* 20 Global Bank 13 SolarNow 1

Hatton National Bank 20 Aloe / RMB 13 Redavia 0.5

LOLC Cambodia 20

Total USD m 578***

Disbursed investments by country Outstanding amount (USD m)

India 69 Peru 20

Bangladesh 50 Singapore* 17

Sri Lanka 47 Armenia 15

Panama 39 Honduras 15

Cambodia 37 Mongolia 15

El Salvador 36 Nicaragua 15

Ecuador 35 Namibia 13

Georgia 30 Tanzania 9

Kenya 30 Dominican Republic 5

Turkey 30 Uganda 1

Vietnam 30 Ghana 0.5

Costa Rica 20

Total USD m 578***

*Chase Bank is impaired at 100 %

**Corporate loan to a Singapore holding company. Most of the underlying projects are in Cambodia, the Philippines, Malaysia, and Thailand

***All figures are rounded

8

GCPF's invested volume grew by USD 74 million to USD 578 million in 2019. Contributing to this were USD 57 million and USD 80 million of disbursements to new and existing counterparties, respectively. The differ-ence between the amounts disbursed, the conversions and the growth in invested volume is repayments, which amounted to USD 63 million. The investment portfolio was further diversified with a total number of 38 partners in the portfolio by the end of 2019.

Disbursed investments by currency

Disbursed investments by financial instrument*

Disbursed investmentsby type of partner institution

In 2019, the Fund continued to increase its share of non-USD loans from 4 % to 9 %. The strongest increases came from the exposures to the Peruvian nuevo sol (PEN) and Indian rupee (INR). All non-USD exposures are fully hedged against currency risk. The direct investments increased from 9 to 10 % during 2019 with the remaining 90 % of the portfolio being made up of loans to financial institutions. As of end of 2019, GCPF had two partner institutions that were in Stage 3 of the IFRS 9 Impair-ment Methodology. Stage 3 cases show a higher level of impairment.

* All non-USD exposures are hedged against currency risk

* Excluding provisions / impairments

** Current subordinated

debt exposure com-posed of Ameria-Bank, TBC Bank and Banco Pichincha

PEN 3.5 %

EUR 2.6 %UGX 0.1 %INR 3.2 %

USD 90.6 %

Subordinated debt10 %

Direct investments10 %

Senior debt**90 %

Financial institutions90 %

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ENERGY AND CO2 EMISSION REDUCTION

Upon its 10th anniversary, GCPF has disbursed 74,500 sub-loans with a cumulative total value of USD 795 million. In 2019, more than 12,000 new sub-loans with a value of over USD 209 million were disbursed by GCPF's partner institutions.

The Fund has passed the impor-tant milestone of reaching over 500 MW of installed renewable energy capacity. This 175 MW increase was mainly driven by solar PV and hydropower projects. At the end of 2019 the total annual renewable energy production amounted to more than 1,500 GWh.

New energy efficiency projects financed by the Fund are expected to save more than 47 GWh annually, compared to 44 GWh in 2018. Most of the projects are associated with the financing of energy efficient projects in SMEs.

Annual CO2 emission reduction by technology since inception*

0

2011 Q1 Q3 Q1 Q3 Q1 Q3 Q1 Q3 Q1 Q3 Q1 Q3 Q1 Q3 Q1 Q3

2012 2013 2014 2015 2016 2018 2019 Q1 Q3

2017

100,000,000

200,000,000

300,000,000

400,000,000

500,000,000

600,000,000

700,000,000

800,000,000

Renewable energy 75 %Buildings 14 %

Industrialprocess 5 %

Agriculture 3 %

Transportation 2 % Other 0.3 %

Consumer appliances 0.5 %

Cumulative value of disbursed sub-loans, since inception (USD)

* Only includes financed assets still generating savings

10

As per the end of 2019, the total expected lifetime CO2 emission reduction for all projects financed by the Fund since inception amounted to over 17.2 million t of CO2. Thanks to an increase in renewable energy production, projects financed in 2019 contrib-uted more than 4.4 million t.

GCPF continuously supports its partner institutions in the reporting process. User-friendly tools and procedures facilitate data collection while ensuring the quality of the data reported.

* Only includes financed assets still generating savings

2008

2010

2012

2014

2016

2018

2020

2022

2024

2026

2028

2030

2032

2034

2036

2038

2040

2042

2044

2046

2048

2050

2052

2054

2056

2058

Annual CO₂ emission reduction (t CO₂, le� axis)Cumulative CO₂ emission reduction (t CO₂, right axis)

100,0000 0

200,000300,000400,000500,000600,000700,000800,000

2,250,0004,500,0006,750,0009,000,00010,250,00013,500,00014,750,00018,000,000

2011Q1 Q2Q3Q4 Q1 Q2Q3Q4 Q1 Q2Q3Q4 Q1 Q2Q3Q4 Q1 Q2Q3Q4 Q1 Q2Q3Q4 Q1 Q2Q3Q4 Q1 Q2Q3Q4 Q1Q2Q3Q4

2012 2013 2014 2015 2016 2017 2018 2019

Annual energy savings of disbursed loans (MWh)Annual CO₂ emission reduction of disbursed loans (t CO₂) Annual energy production of loans disbursed for renewable energy projects (MWh)

0200,000

400,000

600,000

800,0001,000,000

1,200,000

1,400,000

1,600,000

Projected lifetime CO₂ emission reduction of financed assets

Annual energy savings, renewable energy production and CO₂ emission reduction of portfolio*

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Partner institution Country Type of projects funded

Disbursements to GCPF- funded eligible projectssince inception (USD m)1 Compliance confirmed2 Population (m)3 GDP (USD m)4 GDP growth5

Total CO2 emissions (t)6

CO2 emissions per capita (t)7

Acceso Crediticio Peru Natural gas vehicles predominantly for taxi services 17.9 March 2020 32.0 14,418 3.98 % 49,693,643 1.5

Aloe / RMB Namibia Grid-connected solar PV installations 12.5 March 2020 2.4 11,102 –0.55 % 4,037,150 1.6

Ameriabank Armenia Energy efficiency upgrades for industrial and agricultural processes 23.3 March 2020 3.0 10,343 5.20 % 5,165,593 1.8

Banco Atlantida Honduras Small hydropower projects 20.3 April 2020 9.6 5,139 3.75 % 9,426,740 1.0

Banco Atlantida SLV El Salvador Predominantly renewable energy projects in solar and biomass technologies 9.5 March 2020 6.4 8,332 2.54 % 5,735,668 0.9

Banco Davivienda El Salvador Renewable energy projects, predominantly solar PV 36.9 March 2020 6.4 8,332 2.54 % 5,735,668 0.9

Banco Pichincha Ecuador Energy-efficient household appliances such as washing machines and fridges 79.4 March 2020 17.1 11,734 1.38 % 34,299,317 2.1

Banco ProCredit EcuadorEquipment replacement for SMEs ranging from bakery ovens to sewing equipment, work-shop machinery, plotters, tractors or taxis

20.4 March 2020 17.1 11,734 1.38 % 34,299,317 2.1

Banco Promerica CR Costa Rica Renewable energy projects including solar PV and hydropower and bus fleet replacements 23.6 March 2020 5.0 17,671 2.63 % 7,584,411 1.5

Banco Promerica DR Dominican Republic

Solar PV equipment and consumer lending for energy-efficient appliances 3.9 March 2020 10.6 17,748 6.98 % 21,430,380 2.0

BanPro HondurasProjects across all sectors, from commercial air conditioning replacement, industrial process upgrades, car replacement and smaller solar PV projects

26.5 March 2020 9.6 5,139 3.75 % 9,426,740 1.0

Basis Bank JSC Georgia Energy efficiency projects in industry and buildings 2.6 March 2020 3.7 12,005 4.80 % 8,720,300 2.3

CiFi Panama Renewable energy projects, mainly biomass and solar PV 23.8 March 2020 4.2 25,554 3.68 % 9,612,198 2.3

Cleantech Solar Singapore Rooftop solar projects in various countries in South-East Asia 20.0 April 2020 5.6 101,532 3.14 % 47,407,144 8.4

Electronica Finance Ltd India No projects reported so far. Potential projects include ma-

chines for SMEs manufacturing parts for different industries – July 2019 1,352.6 7,763 6.81 % 2,161,567,072 1.6

Global Bank Panama Targeting green buildings for a new green lending product as well as renewable energy projects 10.7 March 2020 4.2 25,554 3.68 % 9,612,198 2.3

Greenlight Planet Kenya Solar home systems and energy-efficient household appliances targeting diverse African markets 10.0 March 2020 51.4 3,468 6.32 % 16,264,973 0.3

PARTNER INSTITUTIONS

1 Only partner institutions with out-standing amounts as of 31 / 12 / 2019 are listed. GCPF has other projects with partner institutions that have repaid their loans. These projects are still operational and create impact.

2 Compliance with GCPF's social and environmental exclusion list and maintenance of social and environ-mental management system: last check

3 World Bank figures for 20184 Gross domestic product per capita

based on purchasing power parity (PPP), World Bank, figures for 2018

Institution facts

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Acceso Crediticio Peru Natural gas vehicles predominantly for taxi services 17.9 March 2020 32.0 14,418 3.98 % 49,693,643 1.5

Aloe / RMB Namibia Grid-connected solar PV installations 12.5 March 2020 2.4 11,102 –0.55 % 4,037,150 1.6

Ameriabank Armenia Energy efficiency upgrades for industrial and agricultural processes 23.3 March 2020 3.0 10,343 5.20 % 5,165,593 1.8

Banco Atlantida Honduras Small hydropower projects 20.3 April 2020 9.6 5,139 3.75 % 9,426,740 1.0

Banco Atlantida SLV El Salvador Predominantly renewable energy projects in solar and biomass technologies 9.5 March 2020 6.4 8,332 2.54 % 5,735,668 0.9

Banco Davivienda El Salvador Renewable energy projects, predominantly solar PV 36.9 March 2020 6.4 8,332 2.54 % 5,735,668 0.9

Banco Pichincha Ecuador Energy-efficient household appliances such as washing machines and fridges 79.4 March 2020 17.1 11,734 1.38 % 34,299,317 2.1

Banco ProCredit EcuadorEquipment replacement for SMEs ranging from bakery ovens to sewing equipment, work-shop machinery, plotters, tractors or taxis

20.4 March 2020 17.1 11,734 1.38 % 34,299,317 2.1

Banco Promerica CR Costa Rica Renewable energy projects including solar PV and hydropower and bus fleet replacements 23.6 March 2020 5.0 17,671 2.63 % 7,584,411 1.5

Banco Promerica DR Dominican Republic

Solar PV equipment and consumer lending for energy-efficient appliances 3.9 March 2020 10.6 17,748 6.98 % 21,430,380 2.0

BanPro HondurasProjects across all sectors, from commercial air conditioning replacement, industrial process upgrades, car replacement and smaller solar PV projects

26.5 March 2020 9.6 5,139 3.75 % 9,426,740 1.0

Basis Bank JSC Georgia Energy efficiency projects in industry and buildings 2.6 March 2020 3.7 12,005 4.80 % 8,720,300 2.3

CiFi Panama Renewable energy projects, mainly biomass and solar PV 23.8 March 2020 4.2 25,554 3.68 % 9,612,198 2.3

Cleantech Solar Singapore Rooftop solar projects in various countries in South-East Asia 20.0 April 2020 5.6 101,532 3.14 % 47,407,144 8.4

Electronica Finance Ltd India No projects reported so far. Potential projects include ma-

chines for SMEs manufacturing parts for different industries – July 2019 1,352.6 7,763 6.81 % 2,161,567,072 1.6

Global Bank Panama Targeting green buildings for a new green lending product as well as renewable energy projects 10.7 March 2020 4.2 25,554 3.68 % 9,612,198 2.3

Greenlight Planet Kenya Solar home systems and energy-efficient household appliances targeting diverse African markets 10.0 March 2020 51.4 3,468 6.32 % 16,264,973 0.3

5 Gross domestic product at market prices based on constant local cur-rency, World Bank, figures for 2018

6 OECD Air and GHG emissions, 2017 figures


Country facts

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Hatton National Bank Sri Lanka Looking into financing renewable energy projects 9.9 March 2020 21.7 13,474 3.21 % 23,031,045 1.3

Hodson Renewable India Solar rooftop projects for industrial and commercial clients 2.03 March 2020 1,352.6 7,763 6.81 % 2,161,567,072 1.6

LOLC Cambodia Cambodia Looking into vehicle financing to replace commercial tuk-tuks by three-wheelers 22.8 March 2020 16.2 4,361 7.50 % 10,762,923 0.7

Mobisol Tanzania Solar home systems and energy-efficient household appli-ances 6.0 March 2019 56.3 3,227 5.44 % 10,131,790 0.2

Nam A Bank Vietnam Household appliances and two wheelers 7.2 March 2020 95.5 7,448 7.08 % 191,243,601 2.0

Off Grid Electric Tanzania Off-grid solar home system and energy-efficient appliances 4.22 March 2020 56.3 3,227 5.44 % 10,131,790 0.2

Pan Asia Bank Sri Lanka Hybrid cars 40.2 March 2020 21.7 13,474 3.21 % 23,031,045 1.3

Prasac Cambodia Energy-efficient farming equipment, solar home systems and consumer appliances 24.8 March 2019 16.2 4,361 7.50 % 10,762,923 0.7

Ratnakar Bank India Energy-efficient pumps, drip irrigation systems and solar home systems for smallholder farmers 38.0 March 2020 1,352.6 7,763 6.81 % 2,161,567,072 1.6

Redavia Ghana Solar rooftop projects for industrial and commercial clients 0.52 November 2018 29.8 4,747 6.26 % 13,779,635 0.5

Roserve India Developer of energy efficient waste water treatment projects. 6.4 March 2020 1,352.6 7,763 6.81 % 2,161,567,072 1.6

Sekerbank Turkey Building insulation projects, energy-efficient tractors and solar thermal installations for agricultural clients 70.0 March 2019 82.3 28,069 2.83 % 378,631,090 4.7

SolarNow Uganda Off-grid solar home system and energy-efficient appliances 1.0 December 2018 42.7 2,038 6.15 % N / A N / A

SouthEast Bank BangladeshEnergy efficiency projects in the ready-made garment sector, financing equipment such as label weaving machines, dryers, irons and washing machines

25.7 April 2020 161.4 4,372 7.86 % 78,270,170 0.5

SREI Infrastructure Finance India One 50 MW wind power plant 30.0 March 2019 1,352.6 7,763 6.81 % 2,161,567,072 1.6

TBC Bank Georgia Renewable energy projects with a focus on small-scale hydro-power plants 39.0 March 2020 3.7 12,005 4.80 % 8,720,300 2.3

The City Bank BangladeshEnergy efficiency projects in the ready-made garment sector, financing equipment such as label weaving machines, dryers, irons and washing machines

38.8 March 2020 161.4 4,372 7.86 % 78,270,170 0.5

TP Bank Vietnam Renewable energy projects, predominantly solar 12.9 March 2020 95.5 7,448 7.08 % 191,243,601 2.0

XacBank MongoliaProjects linked to the building sector: insulation and windows, mortgages for energy efficient housing and boiler replacement as well as hybrid cars

24.5 March 2020 3.2 13,800 7.23 % 19,276,000 6.3

1 Only partner institutions with out-standing amounts as of 31 / 12 / 2019 are listed. GCPF has other projects with partner institutions that have repaid their loans. These projects are still operational and create impact.

2 Compliance with GCPF's social and environmental exclusion list and maintenance of social and environ-mental management system: last check

3 World Bank figures for 20184 Gross domestic product per capita

based on purchasing power parity (PPP), World Bank, figures for 2018

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Institution facts





Hatton National Bank Sri Lanka Looking into financing renewable energy projects 9.9 March 2020 21.7 13,474 3.21 % 23,031,045 1.3

Hodson Renewable India Solar rooftop projects for industrial and commercial clients 2.03 March 2020 1,352.6 7,763 6.81 % 2,161,567,072 1.6

LOLC Cambodia Cambodia Looking into vehicle financing to replace commercial tuk-tuks by three-wheelers 22.8 March 2020 16.2 4,361 7.50 % 10,762,923 0.7

Mobisol Tanzania Solar home systems and energy-efficient household appli-ances 6.0 March 2019 56.3 3,227 5.44 % 10,131,790 0.2

Nam A Bank Vietnam Household appliances and two wheelers 7.2 March 2020 95.5 7,448 7.08 % 191,243,601 2.0

Off Grid Electric Tanzania Off-grid solar home system and energy-efficient appliances 4.22 March 2020 56.3 3,227 5.44 % 10,131,790 0.2

Pan Asia Bank Sri Lanka Hybrid cars 40.2 March 2020 21.7 13,474 3.21 % 23,031,045 1.3

Prasac Cambodia Energy-efficient farming equipment, solar home systems and consumer appliances 24.8 March 2019 16.2 4,361 7.50 % 10,762,923 0.7

Ratnakar Bank India Energy-efficient pumps, drip irrigation systems and solar home systems for smallholder farmers 38.0 March 2020 1,352.6 7,763 6.81 % 2,161,567,072 1.6

Redavia Ghana Solar rooftop projects for industrial and commercial clients 0.52 November 2018 29.8 4,747 6.26 % 13,779,635 0.5

Roserve India Developer of energy efficient waste water treatment projects. 6.4 March 2020 1,352.6 7,763 6.81 % 2,161,567,072 1.6

Sekerbank Turkey Building insulation projects, energy-efficient tractors and solar thermal installations for agricultural clients 70.0 March 2019 82.3 28,069 2.83 % 378,631,090 4.7

SolarNow Uganda Off-grid solar home system and energy-efficient appliances 1.0 December 2018 42.7 2,038 6.15 % N / A N / A

SouthEast Bank BangladeshEnergy efficiency projects in the ready-made garment sector, financing equipment such as label weaving machines, dryers, irons and washing machines

25.7 April 2020 161.4 4,372 7.86 % 78,270,170 0.5

SREI Infrastructure Finance India One 50 MW wind power plant 30.0 March 2019 1,352.6 7,763 6.81 % 2,161,567,072 1.6

TBC Bank Georgia Renewable energy projects with a focus on small-scale hydro-power plants 39.0 March 2020 3.7 12,005 4.80 % 8,720,300 2.3

The City Bank BangladeshEnergy efficiency projects in the ready-made garment sector, financing equipment such as label weaving machines, dryers, irons and washing machines

38.8 March 2020 161.4 4,372 7.86 % 78,270,170 0.5

TP Bank Vietnam Renewable energy projects, predominantly solar 12.9 March 2020 95.5 7,448 7.08 % 191,243,601 2.0

XacBank MongoliaProjects linked to the building sector: insulation and windows, mortgages for energy efficient housing and boiler replacement as well as hybrid cars

24.5 March 2020 3.2 13,800 7.23 % 19,276,000 6.3

5 Gross domestic product at market prices based on constant local cur-rency, World Bank, figures for 2018


7 OECD Air and GHG emissions, 2017 figures GC

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Country facts

FUNDING SITUATION

Split of commitments and subscriptions according to Share class / Notes*

As of the end of 2019, funding commitments to GCPF totaled USD 656 million. The funding profile of GCPF has remained long-term, with over 45 % of funding commitments having a remaining maturity of at least 5 years and 32 % with a remaining maturity of at least 10 years. Out of the total commitments, USD 593 million were subscribed. In the course of the year, the Fund raised Notes from existing (ÄVWL and Sparkasse Bremen) as well as new (Democracy & Media Foundation and an insti-tutional investor) investors.

*Figures are rounded.

A Shares

146

210

72

165

48

15

B Shares C SharesNotes0

25

50

75

100

125

150

175

200

225

250

275

Invested commitments (including valuation gains) Remaining commitments

USD m

16

Subscribed capital by investor (%)Note: In percentage of total drawn amount plus Notes at nominal

Shareholder structure based on voting rights

* responsAbility Micro and SME Finance Fund** responsAbility SICAV (Lux) Mikro- und KMU Finanz Fonds*** responsAbility SICAV (Lux) Micro and SME Finance Leaders

KfW on be-half of BMU 21.4 %

BEIS 21.1 %

OeEB 13.7 %

FMO 12.4%

Danida 3.2%

EIB 1.1 % responsAbility 0.5 %

KfW 13.3 %

IFC 13.3 %

13.6 %12.7 %12.7 %

12.2 %

8.4 %10.1 %

8.4 %6.7 %

2.8 %2.7 %

2.5 %2.0 %2.0 %

1.5 %0.7 %

0.4 %0.3 %0.2 %0.2 %

0 3 6 9 12 15Private investor

responsAbilityHeilsarmee

Democracy and Media FoundationDFL***

DFI**Danida

EIBInstitutional investor

DFR*Sparkasse Bremen

FMOOeEB

ASNÄVWLBEISKfWIFC

KfW on behalf of BMU

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TECHNICAL ASSISTANCE TAILORED SUPPORT FOR PARTNER INSTITUTIONS

2019 was another landmark year for the GCPF Technical Assistance (TA) Facility. The accumulated number of approved (56) and ongoing projects (71) led to a record disburse-ment of USD 2.1 million for TA projects. These results could only be achieved thanks to a larger TA project management team and a closer collaboration with the investment team in the project needs assessment and imple-mentation to effectively manage the increasing number of TA projects and sustain the GCPF partnership approach.

The bulk of GCPF's efforts in in 2019 were focused on strengthening the operating frame-work for environmental and social (E&S) risk management, exploring potential in new strategic markets to sustain the Fund’s growth as well as piloting new innovative projects.

In its continuous efforts to support GCPF partner financial institutions with identifying, assessing, mitigating and reporting E&S risks linked to energy efficiency and renewable energy projects, the TA Manager has worked on strengthening the set of tools and capac-ity-building programs available to partner institutions and initiated several projects to build a comprehensive E&S toolkit.

A number of TA projects initiated in 2019 helped GCPF prepare new investments – par-ticularly in Asia – and assess strategic markets.

A market study in cooperation with the Energy Access TA Facility and Bloomberg New Energy Finance was commissioned to assess the top 15 Sub-Saharan African coun-tries with Commercial and Industrial Solar potential and provide a deep assessment of Kenya, Ghana and Nigeria.

With the intent to explore innovative ways to support GCPF partner institutions and foster new approaches, the TA Manager has also launched new TA programs including a scrapping and recycling TA program for partner institutions in Peru, Cambodia and India, aiming at assessing the feasibility and market appetite for scrapped or recycled products which to be used as down payment linked to a credit; and a project to help a partner institution in Panama to strategize portfolio decarbonization efforts.

Besides, two regional green lending work-shops were organized in Bangkok and Lima, where partners and prospects were invited to share experiences and deepen their knowl-edge on innovative approaches for energy efficiency and renewable energy lending. In total, those workshops gathered more than 70 participants from 23 countries.

To nurture continued knowledge exchange between in-person workshops, the Green Lending Forum was created to raise

18

THE GCPF TECHNICAL ASSISTANCE FACILITY The GCPF Technical Assistance Facility is key to the success of improved energy efficiency and the growth of renewable energy markets in the target countries. It helps bridge knowledge gaps and supports GCPF in fulfilling its role as a market enabler.

The Facility is set up independently from the Fund. Its activities are overseen by the TA Committee (see p. 20), which acts at arm’s length from the Fund.

The Facility is managed by a dedicated team within the investment manager responsAbility Investments. It initiates projects in close cooperation with GCPF partner institutions. Consultancy services are implemented by third-party providers who are selected through a tender process.

GCPF Technical Assistance Facility: key figures for 2019

Projects managed (ongoing and completed) 127

Projects approved 56

Total funds disbursed (TA projects and management fees)

USD 2.3 m

Funding approved USD 3.5 m

awareness on the relevance and business case of mitigating climate change. In 2019, the Forum featured a number of webinars, a green lending quiz, interviews as well as regular posts on GCPF related topics. The Forum also hosted a webinar on the findings of this report which revealed new industry insights and received much attention with more than 400 webinar participants.

To recognize the outstanding performance and impact of its partner institutions in establishing or scaling up green lending

activities, the second edition of the Global Climate Partnership Award was given to Pan Asia Bank, acknowledging the bank’s noteworthy, incremental efforts to develop an energy-efficient and renewable energy lending portfolio. The award ceremony was held in Tbilisi, where representatives of the Pan Asian Bank were invited to receive the award in the presence of the GCPF Board Members and Shareholders.

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Board of DirectorsAppointed by the GCPF shareholders, the Board of Directors has an oversight role and is responsible for defining GCPF’s strategic direction. It has sole power to administer and manage the Fund.

– Claudia Arce, Chairperson – Ulrike Lassmann, (from January 2019) – Sharmila Hardi – James McEwen – Cornelis van Aerssen – Adalisa Vladacenco (from May 2019)

Investment CommitteeThe Investment Committee is appointed by the Board of Directors. Its main function is to approve the investment decisions proposed by the investment manager and to monitor its other activities.

– Jürgen Welschof, Chairperson – Juan Alario, PhD – Judith Brandsma – Claudia Loy, PhD

Technical Assistance CommitteeAppointed by facility donors, the Technical Assistance Committee ensures that the Technical Assistance provided by GCPF supports the Fund’s objectives and activities.

– Ulrike Lassmann, Chairperson – Ritu Kumar (until Dec 2019) – Andreas Arvanitakis

FUND GOVERNANCE

INVESTMENT MANAGER

Technical Assistance Donors

Technical Assistance Committee

Shareholders

Board of Directors

Investment Committee

20

Claudia Arce is Director for Digitalisation at KfW Devel-opment Bank and has ample experience in climate change and energy efficiency financ-ing through public-private partnerships.

Juan AlarioPhD, has over 30 years of experience in pro-ject evaluation and financing, mainly related to energy, at the European Investment Bank, and as an independent advisor.

Andreas Arvanitakisis a Climate Finance Investment Manager at the UK department for business, energy and industrial strategy. Andreas has 20 years of experience working at the interaction of climate change policy, climate finance invest-ments and strategy, and carbon markets.

Judith Brandsmahas been a member of GCPF’s Investment Committee since 2015. She has more than 20 years of experience in financial sector development, at the World Bank and as anindependent advisor to international devel-opment finance institutions.

Sharmila Hardiis the Global Head of IFC’s Banking, Small and Medium Enterprise business line, SME Finance Forum and the Banking on Women product and has had 25 years of experience in financing with IFC.

Ritu Kumaris Director of Environmental and Social Responsibility at the UK development finance institution CDC Group with over 25 years of experience in managing environmen-tal and social issues in emerging markets.

Ulrike Lassmannis heading the country team for East and South East Asia at KfW Development Bank as Regional Manager. She has extensive experience in financial sector development across geographies.

Claudia Loyis an independent advisor with over 30 years of experience in development finance at KfW. She has ample expertise in energy sec-tor project finance, financial sector develop-ment and sustainability management.

James McEwenis currently the Finance Director of the UK’s Ministry of Justice. At the former Department of Energy &Climate Change, he served as Head of Financial Strategy and as a Director for Energy Efficiency and Fuel Poverty.

Cornelis van Aerssenis Manager Private Equity at FMO, respon-sible for the global portfolio of investments in Financial Institutions. He has over 10 years’ experience in funding financial insti-tutions at FMO, via debt and equity, and arranging syndicated loans in Africa, Asia, Europe and Latin America.

Adalisa Vladacencois a senior investment manager at the Euro-pean Investment Bank (EIB). She has over 10 years of experience in infrastructure and in mobilizing capital to unlock public and private sector investments related to infrastructure and climate action.

Jürgen Welschofis Head of KfW’s Energy South Asia Divi-sion and has over 22 years of experience in development finance. He has held various positions at KfW and has broad expertise in energy efficiency and renewable energy projects.

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responsAbility Investments AG, a globally leading impact asset manager in the field of develop-ment investments, is responsible for running GCPF’s business activities and for managing the Technical Assistance Facility. Headquartered in Zurich, Switzerland, and with local offices across four continents, responsAbility manages 15 investment vehicles.

Extensive networksAs a leading private sector inves-tor in micro and SME finance, responsAbility has developed strong and long-standing working relationships with a broad network of financial insti-tutions in emerging economies. Over 17 years of operations, responsAbility's investment specialists have developed a thorough understanding of the needs and aspirations of these partner institutions.

Interdisciplinary teamsWithin responsAbility, GCPF is managed by a core team of 26 experts that combine expertise in investment, energy, technical assistance as well as environ-mental and social risk manage-ment. Working closely with responsAbility specialists across the globe, they ensure that funded projects meet the Fund’s objectives with regards to the reduction of CO2 emissions and economic viability.

AN EXPERT INVESTMENT TEAM

22

FOUNDED2003

ASSETS UNDER MANAGEMENTUSD 3.5 bn

OFFICES WORLDWIDE10

EMPLOYEES WORLDWIDE245

INVESTMENT COUNTRIES75

HIGH-IMPACT PORTFOLIO COMPANIES300

(responsAbility Investments AG)

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FINANCIAL STATEMENTS BALANCE SHEET

STATEMENT OF FINANCIAL POSITION As at 31 December 2019 (in USD)

2019 2018

NON-CURRENT ASSETS

Loans and advances to partner institutions 465,291,604 428,854,983

Derivative financial instruments 555,308 –

Total non current assets 465,836,912 428,854,983

CURRENT ASSETS

Loans and advances to partner institutions 58,384,093 36,621,185

Interest receivable on loans to partner institutions 2,201,134 2,455,990

Other receivables and prepayments 221,177 561,464

Cash collateral and time deposits 29,709,949 46,040,000

Cash and cash equivalent 15,067,945 45,017,119

Total current assets 105,584,299 130,695,758

Total assets 571,421,211 559,550,741

24

STATEMENT OF FINANCIAL POSITION As at 31 December 2019 (in USD)

2019 2018

CURRENT LIABILITIES

Net assets attributable to holders of redeemable ordinary Class A shares 60,000,000 –

Net assets attributable to holders of redeemable ordinary Class B shares 15,000,000 –

Distribution payable to holders of Class A shares and Class B shares 16,622,603 12,352,603

Accrued investment management fees 3,261,634 2,902,764

Accrued Technical Assistance Facility contribution 1,098,796 488,275

Direct operating expenses payable 562,627 685,988

Interest accruals on notes 541,260 569,345

Derivative financial instruments 3,878,586 26,969

Prepayment subscription – 23,377,858

Notes 500,000 47,500,000

Total current liabilities 101,465,506 87,903,803

NON-CURRENT LIABILITIES

Net assets attributable to holders of redeemable ordinary Class A shares 149,675,373 185,675,373

Net assets attributable to holders of redeemable ordinary Class B shares 56,925,373 65,925,373

Derivative financial instruments 57,212 1,630,765

Notes 145,907,707 109,358,000

Total non-current liabilities 352,565,664 362,589,511

TOTAL LIABILITIES 454,031,170 450,493,314

EQUITY

Share capital 164,702,034 141,324,176

Profit / loss brought forward (32,266,749) (25,720,371)

Profit / loss for the year (15,045,245) (6,546,378)

Total equity 117,390,040 109,057,427

Total liabilities and equity 571,421,211 559,550,741 GCPF

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INCOME STATEMENT

STATEMENT OF COMPREHENSIVE INCOME As at 31 December 2019 (in USD)

2019 2018

INCOME

Interest income 45,579,690 31,108,654

Other income 801,536 1,584,571

Total income 46,381,226 32,693,224

EXPENSES

Loan loss allowance (13,157,865) (7,400,065)

Impairment (2,160,000) (1,000,000)

Net (increase) / reversal of time deposit loss allowance (59) –

Net fair value movement on loans at fair value through profit or loss (201,755) (423,402)

Net fair value movement on derivative financial instruments (1,908,923) (832,243)

Investment management fees and bonus to investment manager (7,810,609) (6,959,326)

Technical Assistance Facility contribution (1,098,796) (488,275)

Direct operating expenses (1,521,245) (1,501,233)

Other operating expenses (18,598) (13,589)

Interest on Notes (6,718,461) (6,691,470)

Interest on swaps (9,636,996) (1,539,756)

Realised foreign exchange losses (570,562) (37,641)

Total expenses (44,803,868) (26,886,999)

Total operating profit / loss before taxes and distribution 1,577,358 5,806,225

Distribution to holders of redeemable ordinary shares (16,622,603) (12,352,603)


Other comprehensive income (net of tax) – –

Total comprehensive income for the period (net of tax) (15,045,245) (6,546,378)

26

STATEMENT OF CHANGES IN NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE ORDINARY SHARES AND EQUITYFor the year from 1 January to 31 December 2019

CLASS A SHARES CLASS B SHARES CLASS C SHARES COMBINED NET ASSETS ATTRIBUT-ABLE TO SHARE-HOLDERS

Net assets attributable to share-holders

Number of shares out-standing





As at 31 December 2018 185,675,373 1,238 65,925,373 2,637 109,057,427 2,822 360,658,173

Issue of redeemable ordinary shares 24,000,000 160 6,000,000 240 23,377,858 608 53,377,858

As at 31 December 2019 209,675,373 1,398 71,925,373 2,877 132,435,285 3,430 414,036,031

Operating (loss)/profit before tax and distribution

11,132,407 – 5,490,196 – (15,045,245) – 1,577,358

Distribution to holders of Class A and B shares

(11,132,407) – (5,490,196) – – – (16,622,603)

As at 31 December 2019 209,675,373 1,398 71,925,373 2,877 117,390,040 3,430 398,990,786

For the year from 1 January to 31 December 2018

CLASS A SHARES CLASS B SHARES CLASS C SHARES COMBINED NET ASSETS ATTRIBUT-ABLE TO SHAREHOLD-ERS

Net assets attributable to share holders


Net assets attributable to sharehold-ers


Net assets attributable to share holders


As at 31 December 2017 183,675,373 1,224 57,425,373 2,297 126,006,432 2,822 367,107,178

Issue of redeemable ordinary shares 2,000,000 13 8,500,000 340 – – 10,500,000

Initial loan loss allowance under IFRS 9 effective the 1.1.2018

– – – – (10,402,627) – (10,402,627)

As at 31 December 2018 185,675,373 1,238 65,925,373 2,637 115,603,805 2,822 367,204,551

Operating (loss)/profit before tax and distribution

8,291,074 – 4,061,528 – (6,546,378) – 5,806,225

Distribution to holders of class A and B shares

(8,291,074) – (4,061,528) – – – (12,352,603)

As at 31 December 2018 185,675,373 1,238 65,925,373 2,637 109,057,427 2,822 360,658,173

STATEMENT OF CHANGES IN NET ASSETS

Numbers are rounded

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CASH FLOW STATEMENT

STATEMENT OF CASH FLOWS For the year ended 31 December 2019 (in USD)

2019 2018

CASH FLOW FROM OPERATING ACTIVITIES


Adjustments to reconcile profit for the year to net cash flow:

Net fair value movement on derivative financial instruments 1,722,755 1,647,823

Loans to partner Institutions (loss) allowance 13,157,865 (10,402,627)

Impairment 2,160,000 –

Net realized and unrealized foreign exchange (losses)/gains 529,269 –

Working capital adjustment:

Net increase / (decrease) in the other receivable and prepayments 340,287 96,068

Net increase / (decrease) in cash collateral and time deposits 16,330,051 (46,040,000)

Net increase / (decrease) in interest receivable on loans to partner institutions 254,856 (768,868)

Net increase / (decrease) in distribution payable to holders of Class A and Class B shares 4,270,000 4,128,560

Net increase / (decrease) in interest payable to noteholders (28,086) 99,269

Net increase / (decrease) in fund management fees 285,750 5,306

Net increase / (decrease) in bonus to the Investment Manager 73,121 167,818

Net increase/(decrease) in Technical Assistance Facility contribution 610,521 64,376

Net increase / (decrease) in direct operating expenses payable (123,362) (47,783)

Net increase / (decrease) in subscription receivable (23,377,858) 23,377,858

Net cash from/(used in) operating activities 1,159,924 (34,218,578)

CASH FLOWS FROM INVESTING ACTIVITIES

Net increase / decrease in loans to partner institutions (74,077,956) (2,896,423)

Net cash flows used in investing activities (74,077,956) (2,896,423)

CASH FLOW FROM FINANCING ACTIVITIES

Cash received on shares issued 53,377,858 10,500,000

Cash received from notes issued 37,091,000 6,858,000

Cash paid from notes issued (47,500,000) –

Net cash flow from / (used in) financing activities 42,968,858 17,358,000

Net (decrease) / increase in cash and cash equivalents (29,949,174) (19,757,001)

Cash and cash equivalents at 1 January 45,017,119 64,774,120

Closing cash and cash equivalent at 31 December 15,067,945 45,017,119

28

LEGAL DISCLAIMERThis information material was produced by responsAbility Investments AG (“responsAbility”). This information material relates to Global Climate Partnership Fund SA, SICAV-SIF (GCPF) and the GCPF Note, the underlying product of the “GCPF Notes” (“Product”) on the basis of the information contained in the issue document and in the documents referred to herein. The source for all information mentioned herein is responsAbility unless mentioned otherwise. The information contained in this information material (“Information”) is based on sources considered to be reliable, but its accuracy and complete-ness are not guaranteed. Any data are purely indicative and are not a guarantee for future results. The information is subject to change at any time and without obligation to notify the investors. Unless otherwise indicated, all figures are unaudited and are not guaranteed.

Investment opportunities also involve risk. Any action de-rived from this information is always at the investors’ own risk. This information material is for information purposes only and is not an official confirmation of terms. The value of an investment and any income from it are not guaran-teed. Changes in the assumptions may have a substantial impact on the return. Past performance is no indication of current or future performance, and the performance data do not take account of the commissions and costs incurred on the issue and redemption of shares. Based on the legal document (Issue Document), expenses and fees will be charged in particular for administration and investment management services.

In reaching a determination as to the appropriateness of any proposed transaction, clients should undertake a thor-ough, independent review of the legal, regulatory, credit, tax, accounting and economic consequences of such transaction in relation to their particular circumstances. The Product is reserved to certain Eligible Investors as de-fined in the Issue Document. The current Issue Document can be obtained from the Product's registered office. This Information is not intended as an offer, a recommendation or an invitation to purchase or sell financial instruments or financial services and does not release the recipient from making his / her own assessment. In particular, the recipient is advised to assess the information, with the assistance of an adviser if necessary, as to its compatibil-ity with his / her own circumstances in view of any legal, regulatory, tax, investment-related, and other implications. Investments held by the financial product described in this information material are associated with a higher risk than investments in more developed markets or countries. Investors are expressly made aware of the risks described in the Issue Document and the lower liquidity and greater difficulty in determining the value of the Product’s invest-ments (which are generally unlisted and not traded) and must also be prepared to accept substantial price losses including the entire loss of their investment. responsA-bility and / or the members of its board of directors and

employees may hold shares in the financial product (or any related investments) mentioned in this information material and may add to or sell these positions from time to time. Additionally, the members of the board of direc-tors and employees of responsAbility may serve as mem-bers of boards of directors of the investments in which the financial product is invested. This information material is expressly not intended for persons who, due to their nationality or place of residence, are not allowed access to such information under applicable law. The financial product specified in this information material is and will not be licensed for distribution in the United States of America. As a result, it may not be offered, sold, or deliv-ered there. Neither the present information material nor copies thereof shall be sent or taken to the United States of America or issued in the US or to a US person (in the terms of Regulation S of the United States Securities Act of 1933, in the respective current version). The distribution of the Issue Document and the offering of the Shares and Notes may be restricted in certain jurisdictions. Luxembourg: The Product is an investment company with variable capital governed by the laws of the Grand Duchy of Luxembourg and is subject to the Law of 13 February 2007. The above registration does however not require any Luxembourg authority to approve or disapprove either the adequacy or accuracy of the Issue Document or the assets held in the Product. Any representations to the contrary are unauthorised and unlawful. The fact that the Product is entered on the list of authorized specialised investment funds by the Luxembourg authority shall not under any circumstances be described in any way whatsoever as positive assessment made by the Luxembourg authority of the quality of notes offered for sale. The Product is exempt from the scope of the Law of 12 July 2013 on alternative investment fund managers (“AIFM law”) pursuant to article 2 (2) c in Luxembourg and therefore does not require registration. Switzerland: This Product is not authorised for distribution to the public in Switzerland. The present information material is therefore strictly limited to internal use and may not be passed on to any third party, unless (i) such third party has solicited so on its own initiative, or (ii) such third party is a qualified investor under the terms of the Swiss Federal Act on Collective Investment Schemes (art.10 sec.3. and 3ter) and related regulations.

This work is protected by copyright law. All rights reserved, in particular with respect to translation, reproduction, communication, copying of images and tables, broadcast-ing, microfilming or reproduction by other means, as well as storage on data processing equipment, even where such use only applies to excerpts. Reproduction of this work or parts thereof is permissible only within the scope of statutory provisions without the prior written consent of responsAbility.

© responsAbility Investments AG, 2020. All rights reserved.

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Contact information:www.gcpf.lu [email protected]

Publisher:Global Climate Partnership Fund, SA SICAV-SIF 14, Boulevard Royal 2449 Luxembourg

Production:responsAbility Investments AG

Editorial team:Stacy LucidoVivian Kotun

Design and Layout: LIEBCHEN+LIEBCHEN Kommunikation GmbH

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