30 Aug FINNFUND In Brief

“Finnfund is a Finnish development finance company that promotes sustainable development by providing long-term risk capital for private projects in developing countries.

Investment criteria include profitability, sustainability and positive development impacts in the target country.

Finnfund’s financing is for both greenfield and expansion projects that involve a Finnish business interest or development policy interest. Finnish business interest can be cooperation with Finnish companies, such as projects with a Finnish company as a shareholder or as a technology provider. Development policy interest could be, for example, projects that curb climate change.”

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29 Aug Special Report: Renewable Energy Market Landscape Study for Southern and East Africa

“Recent report captures the renewable energy financing landscape for 15 countries in Southern and East Africa and points the way toward added value for the next phase of the Energy and Environment Partnership (EEP) in the region.

Ensuring universal access to clean energy is at the core of the 2030 Agenda for Sustainable Development. However, according to a study released this month by the firm Danish Energy Management & Esbensen, more than 180 million people in Southern and East Africa continue to live without access to modern energy, highlighting the gap still to be overcome and the need for renewed commitments to the 2030 goals.”

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28 Aug Can Ethiopia be Africa’s leading manufacturing hub?

“With Ethiopia having the second biggest population in Africa, it is under growing pressure to tackle unemployment. The BBC’s Alastair Leithead visited the country to find out how it is tackling the problem.

The factory workers sing Ethiopia’s national anthem in unison as one shift ends and another prepares to begin.

Outside, a fleet of passenger buses pulls into Hawassa Industrial Park, as thousands of textile workers – most of them women – switch places.”

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22 Aug Cooperation is essential for the international success of Finnish cleantech SMEs

“According to a new study, networking represents the best path to internationalisation for the Finnish cleantech sector. A research project underway at Lappeenranta University of Technology (LUT) has found that the success of cleantech companies depends on mutual cooperation with diverse and project-style support from public funding providers and decision makers.”

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17 Aug Nordic funds invest in responsAbility Renewable Energy Holding in Africa

“Two new Nordic equity investments will support African countries to increase their clean energy production. The Nordic Development Fund and Norfund have approved a total of USD 19 million of equity investments in responsAbility Renewable Energy Holding (rAREH). Other investors in rAREH are Germany’s KfW and Switzerland’s responsAbility.

responsAbility Renewable Energy Holding (rAREH) aims to increase the renewable energy supply in Sub-Saharan Africa in a responsible way while generating attractive, long-term and stable cash flows across a diversified portfolio of renewable energy plants. rAREH was created in December 2013 with the goal to invest in and co-develop small- and medium-sized renewable energy projects up to 50 MW at various stages of the project life cycle, from development and construction to operations.

A particular focus will be on the development stage and to facilitate bankable, long-term power purchase agreements with national grid operators. The current portfolio comprises 14 projects totalling about 160 MW in development across the region. Many of these projects fall under a feed-in tariff (FIT) programme with the local utility company as an off-taker, whereby tariffs are fixed by the government. The offering encompasses equity and quasi-equity financing. rAREH is managed by responsAbility Investments AG, a Zurich-based asset manager.”

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16 Aug World Bank Bonds to Provide $360 Million in Catastrophe Protection for Mexico

“The World Bank (International Bank for Reconstruction and Development, or IBRD) issued catastrophe bonds that will provide Mexico with financial protection of up to $360 million against losses from earthquakes and tropical cyclones.

Mexico is one of the world’s most vulnerable countries to natural disasters. Nearly one third of its population lives in areas that are exposed to hurricanes, storms, floods, earthquakes, and volcanic eruptions. In economic terms, this translates into 71 percent of the country’s GDP considered to be at risk from two or more natural hazards.”

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15 Aug Colombia issues its first green bond in the local market for 200 billion pesos with the support of the IDB

“Proceeds will be used by Bancoldex to finance projects that mitigate the impact of climate change and improve the environmental performance of Colombian companies.

BOGOTÁ, Colombia- Banco de Comercio Exterior de Colombia SA, Bancóldex, with the support of the Inter-American Development Bank (IDB), today issued the country’s first greenbond available through the Colombian Stock Exchange (BVC, Bolsa de Valores de Colombia) for 200 billion pesos to fund projects that help mitigate climate change impacts. The auction was 2-1/2 times oversubscribed, with a demand of 510 billion pesos.”

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09 Aug Fitch affirms African Development Bank at ‘AAA’; Outlook Stable

“Fitch Ratings has affirmed the African Development Bank’s (AfDB) Long-Term Issuer Default Rating (IDR) at ‘AAA’ with a Stable Outlook and Short- Term IDR at ‘F1+’. A full list of rating actions is at the end of this rating action commentary.

Key Rating Drivers

The ‘AAA’ rating primarily reflects extraordinary support from AfDB’s shareholders, assessed by Fitch at ‘aaa’, which provides a three-notch uplift over the bank’s intrinsic rating.

AfDB enjoys strong support from its 80 member states, which include 26 non-African countries with high average ratings. Callable capital subscribed by member states rated ‘AAA’, the largest of which are the US, Germany and Canada, accounts for 21% of the total. This fully covered the bank’s net debt at end-2016, underpinning the ‘aaa’ assessment of shareholders’ capacity to support. The strong propensity of member states to support the bank in case of need is illustrated by on- going capital increases and the bank’s important role in the region’s financing.”

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