ENERGISING EMERGING MARKETS

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1 ENERGISING EMERGING MARKETS

2 COMPLETE LIFECYCLE FINANCING FOR RENEWABLE ENERGY Climate Investor One is an innovative approach to infrastructure financing designed to accelerate the delivery of renewable energy infrastructure in emerging markets. Climate Investor One addresses market deficiencies by combining three innovative investment funds into one facility to offer an end to end financing solution to promoters and developers of renewable energy projects. Climate Investor One shares the development risk of projects by providing development capital to individual projects alongside project developers to get projects off the ground. Climate Investor One also seeks to reduce the complexity and time taken to secure financing for projects by providing equity capital to construct projects when it is needed. Climate Investor One s objective is to reduce the cost of financing and to shorten the time for a project to get from development into operations. This is achieved by simplifying the financing structure, separating the physical engineering from the financial engineering, and by reducing the number of parties involved. At an early project stage, Climate Investor One provides technical, financial, environmental, social development and structuring support through a Development Fund. Once ready for construction, Climate Investor One reduces the number of financing parties required by providing a large part of the all equity construction funding through a Construction Equity Fund. Once the project is operational, Climate Investor One mobilises debt from its Refinancing Fund together with third party debt providers into the project, delivering a refinancing benefit to shareholders and underpinning a long-term stable balance sheet for the project company.

3 CLIMATE INVESTOR ONE REPRESENTS A NEW APPROACH TO FUNDING RENEWABLE ENERGY PROJECTS, THROUGH WHICH POSITIVE SOCIAL IMPACT, ECONOMIC RETURNS AND ENERGY INFRASTRUCTURE WILL BE DELIVERED IN A FASTER AND SIMPLER MANNER. CLIMATE INVESTOR ONE KEY FEATURES Strategy The principal objective of Climate Investor One is to develop projects and achieve medium to long-term investment returns in a portfolio of renewable energy assets in emerging markets. Recent years have seen more emerging markets establishing supportive regulatory frameworks for private investment in renewable energy. However, finance remains scarce, requires multiple providers of capital, and the use of complex financing arrangements often lead to extensive delays in the development period, higher costs, and sometimes outright failure. By combining several innovative investment funds into one, Climate Investor One helps early-stage renewable energy projects achieve bankability quicker, provides a full lifecycle financing solution, and mobilises capital into emerging markets at a more attractive risk profile to institutional investors. Climate Investor One includes: A Development Fund to reduce development times and improve bankability of projects. A Construction Equity Fund to provide a large part of the all equity capital to fund construction and progress projects to an operational stage. A Refinancing Fund to provide long-term and low risk debt during operations. Geographical Areas Through its regional offices, Climate Investor One will invest in countries in Africa, Asia and Latin-America. Technology and Target Size The technology of preference is on-shore wind, PV solar power and run-of-river hydro. Climate Investor One will target mediumsized projects, from 25MW to 75 MW.

4 Targeted Investments Climate Investor One will target renewable energy assets that exhibit some of the following characteristics: Provision of an essential service to the community Greenfield or brownfield with an ability to expand A preferred cash flow profile A need for significant capital expenditure Anticipated project returns commensurate with the investment risk Target Group Climate Investor One, through its Development Funds, will support and augment the development process of local and international developers working on existing opportunities. The Development Fund will not seek to be a seed developer, but will rather support the development process of other parties with a view to accelerating the viability of their project. Climate Investor One will partner with: Local or international project developers in need of hands on technical, financial, commercial and organisational support. Local and international established private equity / renewable energy / infrastructure funds seeking to complement their existing project development resources. Original equipment manufacturers and construction companies requiring unbiased technical, environment, social and financial input which can augment their own resources for project development. Investment Size The Development Fund will be able finance up to 50% of a project development budget, to a maximum of US$ 2,5 million. The Construction Equity Fund will be able to finance up to 75% of a project s construction stage funding requirement, to a maximum of US$ 100 million in the form of shareholder financing. The Refinancing Fund will be able to finance up to 50% of a refinancing long-term debt tranche, following successful construction and commencement of operations. The Refinancing Fund will be a price taker in the refinancing event, following an independently run third party market test, and will not crowd-out the commercial market. Products and Services The Development Fund will provide high risk, patient and long-term project development funding. Through its development teams, Climate Investor One and its partners will have access to inhouse technical, financial and structuring expertise as well as legal, managerial, environmental, social and governance advice through to financial close. From that point onward, the Construction Equity Fund will provide equity finance to construct and commission the project through to operations. The investment focus and strategy of the Construction Equity Fund will be to hold an equity interest in projects and to reduce the number of parties required to finance the construction phase by providing a significant portion of the equity funding required. The Construction Equity Fund will contribute expertise in construction oversight through board and committee

5 GEOGRAPHIC FOCUS target regions focus countries SOLAR ONSHORE WIND RUN-OF-RIVER HYDRO

6 representations and managerial support through appointing qualified people on key positions and financial engineering to enhance shareholder value. Once the project will reach the operational stage, the project company will optimise its funding structure and reduce its cost of capital through the participation of the Refinancing Fund and the procurement of third party debt. Exit Strategy At the commencement of construction, the Development Fund will recover its invested capital as an item in the construction phase funding requirement, on pre-agreed terms and conditions. The Construction Equity Fund will actively work with its partners on exits to improve shareholder returns and will exit the investment over the medium to long term in the form of a trade sale or through a public listing. The Refinancing Fund will receive its investments back in the form of scheduled repayments. Innovative Features Climate Investor One is innovative in the following aspects: It will operate as a complete lifecycle funding solution to develop, construct and operate projects, enabled by the Development Fund being succeeded by the Construction Equity Fund, which in turn will be succeeded by the Refinancing Fund. This continuity of funding will remove friction points within the financing stages, and will bring projects to an operational stage quicker than current practice. The Construction Equity Fund will be able to provide sufficient equity capital to remove the necessity for complex capital structures during construction and multiple parties. This reduced complexity will lead to quicker implementation and will also provide more robust capital to absorb changes that may occur during construction. Following successful construction, the Refinancing Fund will expedite the provision of debt for the de-risked project, which will provide both a longterm stable balance sheet for the project as well as an investment uplift for the shareholders. Approach to Environmental and Social Impact Management Climate Investor One will have a Responsible Investment Framework, based on two pillars of impact, being Do No Harm and Do Good ; The Do No Harm pillar will be delivered by Climate Investor One s environmental and social management system, through which each project will be developed, operated and exited in compliance with international best practises. The objective of this pillar will be to ensure that a project does not have a negative impact on the communities impacted by the project. The Do Good pillar will seek to enable the project to deliver an upside and positive impact on communities. This includes socio-economic benefits such as economic sharing mechanisms and community enhancement interventions such as housing, schooling and healthcare.

7 Climate Fund Managers (CFM), is the fund manager of Climate Investor One. CFM is a joint venture between FMO and Phoenix InfraWorks, both experienced in infrastructure investing, asset and fund management. The CFM team will provide strategic, commercial, operational and financial expertise into investment activities aimed at delivering superior risk adjusted returns for investors and creating value for communities. PHOENIX INFRAWORKS FMO is the Dutch Development Bank, with more than 45 years investment experience in the private sector in developing countries and emerging markets and a strong competence in energy. Phoenix InfraWorks is an infrastructure investment business with expertise in Africa, Europe and Asia including a track record in fundraising, acquiring,optimising, and disposing of assets. Tarun Brahma: T: t.brahma@climatefundmanagers.com Andrew Johnstone: T: a.johnstone@climatefundmanagers.com This document is being provided to targeted recipients as a source of preliminary information about Climate Investor One. This document does not constitute an offer to sell or a solicitation of an offer to buy any securities. This document does not contain all the information necessary to fully evaluate any transaction or investment, and it should not be relied upon. Any investment decision should be made based solely upon appropriate due diligence and upon receipt and careful review of relevant offering documents. Recipients of this document should neither treat nor rely on the contents of this document as advice relating to legal, taxation or investment matters and are advised to consult their own professional advisers. This document includes forward-looking statements that represent our opinions, expectations, beliefs, intentions, estimates or strategies regarding the future, which may not be realized. Actual and future results and trends could differ materially from those described by such statements due to various factors, including those beyond our ability to control or predict. CFM does not undertake any obligation to update or revise any forward- looking statements, whether as a result of new information, future events or otherwise. Past performance is not a guarantee of future results or returns. Any discussion of past or proposed investment opportunities should not be relied upon as an indication of future deal flow. Targeted returns are not guaranteed. This document includes information obtained from publicly available information and from third party sources considered to be reliable. Whilst this information is provided in good faith, it is not, and does not purport to be comprehensive and has not been independently verified. The Development Fund, the Construction Equity Fund, the Refinancing Fund are on the date hereof not yet in existence and CFM is in the process of being established. The Development Fund, the Construction Equity Fund and the Refinancing Fund described herein are therefore not registered or approved for marketing in any jurisdiction (if required) and are therefore not under public supervision. This presentation is solely intended to provide the reader with an overview of features and modalities of the envisaged structure. Securities in the funds described herein may not be offered or sold in the United States absent registration under the US Securities Act of 1933, as amended (the Securities Act ), or an exemption therefrom. The Fund Manager has not registered and does not intend to register any securities under the Securities Act and does not intend to make a public offering of any securities in the United States. Securities in the funds described herein may not be transferred or resold (i) except as permitted under the constituent documents of the applicable fund and (ii) unless they are registered under the Securities Act and under any other applicable securities laws or an exception from such registration is available. Interests in the funds described herein have not been approved or disapproved by the US Securities and Exchange Commission (the SEC ) or by the securities regulatory authority of any state, nor has any other authority or commission passed upon the accuracy or adequacy of this material. Any representation to the contrary is a criminal offense. No fund described herein will be registered as an investment company under the US Investment Company Act of 1940, as amended, in reliance on one or more exemptions or exclusions thereunder. Each fund described herein will obtain appropriate representations and undertakings from prospective investors to ensure that applicable conditions are met. CFM is not registered as an investment adviser with the SEC pursuant to the US Investment Advisers Act of 1940, as amended, and the protections of such registration will not be afforded to the funds described herein or any investor in such funds.

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