THE DANISH CLIMATE INVESTMENT FUND. Torben Huss, Executive Vice President

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1 THE DANISH CLIMATE INVESTMENT FUND Torben Huss, Executive Vice President

2 WHAT IS KIF? Public Private Partnership Operates on commercial terms Provides risk capital for climate investments and climate-related projects Investment with a Danish interest PAGE 2

3 WHAT IS KIF? DKK bn investment countries in committed capital 4 year investment period Fund manager PAGE 3

INSTITUTIONAL INVESTORS Pædagogernes Pensionskasse (PBU) manages pensions for more than 110,000 kindergarten and nursery teachers. The annual pension payments total DKK 2.

PensionDanmark manages collective agreement and company labour market pension funds for 12 unions and 37 employers associations with a total of 642,000 members.

DKK 13bn in climate-related projects, including commitments. PKA has 260,000 members and capital of DKK 200bn.

4 INSTITUTIONAL INVESTORS Pædagogernes Pensionskasse (PBU) manages pensions for more than 110,000 kindergarten and nursery teachers. The annual pension payments total DKK 2.5bn, and the total capital is DKK 50bn. PensionDanmark manages collective agreement and company labour market pension funds for 12 unions and 37 employers associations with a total of 642,000 members. The company s capital is DKK 150bn. PKA manages pensions for five pension funds, primarily within the health sector. PKA has invested approx. DKK 13bn in climate-related projects, including commitments. PKA has 260,000 members and capital of DKK 200bn. Dansk Vækstkapital makes investments on commercial terms in small cap, mid cap and venture funds focusing on small and medium-sized enterprises. The fund was established in 2011 with a total capital of DKK 4.8bn. Aage V. Jensen Charity Foundation is an international fund, established in The fund supports a number of large and small projects, often in cooperation with international organisations or institutions. PAGE 4

5 INVESTMENT STRATEGY Active minority investor Equity focus Investment size DKK 15m to DKK100m Pre-agreed exit strategy PAGE 5

6 KIF CAN INVEST IN Renewable energy projects, e.g. wind, solar or hydro Energy efficient projects Production of energy saving material and equipment PAGE 6

7 A DANISH INTEREST Commercial relations between a Danish business and a company located in countries eligible for investments. PAGE 7

8 Financing Active minority investor Equity in the range of EUR 2m EUR 15m Financial package for larger projects Investment period 6 8 years Agreed exit strategy Strategic partner Blue chip investor owned by Danish government Board membership Strategic advice Environmental and social impact assessment WHAT WE BRING TO THE TABLE Advisory services Evaluation of business plan Development of projects Financial structure Legal set-up Partner negotiations Access to local authorities Environmental, social and governance Network and local presence Experience from more than 1,200 investments in 102 countries Experienced climate team 30 investment directors Seven regional offices Africa, Asia and Latin America 44 regional and local advisers PAGE 8

CASE: AVK BRAZIL KEY FACTS Activity Country Status KIF s share participation Expected total investment Ownwership Production of valves Brazil Signed DKK 12m DKK 35m 33% AVK has built a 2,000 m 2 new

9 CASE: AVK BRAZIL KEY FACTS Activity Country Status KIF s share participation Expected total investment Ownwership Production of valves Brazil Signed DKK 12m DKK 35m 33% AVK has built a 2,000 m 2 new factory. AVK technology and products contribute to reducing losses in water distribution and thereby use of energy. Export to Brazil is not profitable due to high import duties and local content rules. Own factory to increase market share Share capital investment with an agreed exit strategy PAGE 9

10 CASE: LAKE TURKANA, KENYA KEY FACTS Activity Country Status KIF s share participation Expected total investment Ownership Wind farm Kenya Signed DKK 87m DKK 5bn 6.25 % With 310MW Lake Turkana is the largest wind farm in sub-saharan Africa. 365 Vestas turbines are to be installed. 15-year service contract with Vestas. Lake Turkana will provide 17% of Kenya s installed electricity capacity Purchase power agreement has been signed with the Kenyan state electricity company Construction of site and a 428 km transmission line has started PAGE 10

11 IFU S EXECUTIVE BOARD Tommy Thomsen CEO Torben Huss Executive Vice President IFU S CLIMATE TEAM Jacob Klingemann Investment Director Natalia Svejgaard Investment Director Peer Munkholt Investment Director Henrik Frøsig Investment Director Carole Welton Kaagaard Senior CSR Manager PAGE 11

12 TIME FOR QUESTIONS PAGE 12

DANISH CLIMATE INVESTMENT FUND

CASE STUDY DANISH CLIMATE INVESTMENT FUND SEPTEMBER 2017 EXECUTIVE SUMMARY The Danish state and IFU (The Danish Investment Fund for Developing Countries) established the Danish Climate Investment Fund