Oikocredit International RE Finance

Oiko credit, Social Funding and Renewable Energy

Platts 20th Annual Central American Energy Conference, June 2017

Who we are

• Pioneer in ethical investment and private financing for development

• Since 1975, € 2,5 billion invested through 1,670 partner organizations

• People, planet, profit approach to financing

• Over € 1 billion in Assets

• 300 staff in 33 countries

• 53,000 investors

• Investment Areas

– Micro Finance

– Agriculture

– Renewable Energy

Social Impact Investment and RE

It is investing responsibly and in a sustainable

manner.

Alleviate Economic Poverty Reduce Negative Impact

Renewable Energy portfolio

€66 M approved

€42 M capital out

26 projects

• 5 hydropower

• 10 solar on-grid

• 7 solar off-grid

• 2 wind

• 2 funds - mix

Off-grid

Access to electricity

Distributed generation

Cost saving, reliability

On-grid

Energy mix, infrastructure,

national CO2 goals

• Home solar

• Africa & India

• Large rooftop

• India, S-

America

• Solar, wind,

hydro

• All regions

RE strategy: a balanced portfolio

4

Financing Structures – Portfolio Approach

FUNDING A PORTFOLIO OF ASSEST

SPV VS BALANCE SHEET

Funding structure on BS without SPV

Client

Off Taker

RA

or

PP

A

Su

pp

ly a

nd

S

erv

ice

ESCO Loan agreement /

Pledges/Insurances

Escrow Revenue Account

Payments under the

RAs/PPAs Portfolio

Portfolio funding structure with SPV

Clients/ Off-takers

Rental Agreement /

PPA SPV

Direct Agreement

Solar Service

Company

Admin Escrow Agent

Lo

an

ag

reem

en

t / P

led

ge o

n a

ssets

an

d c

on

tracts

Common Issues

• Offtaker Risk -Private Rental Agreement or a PPA -

Creditworthiness of the Offtaker and long term

sustainability.

• Termination and bankruptcy risk

• Curtailment Risk- need net metering policies and good

distribution network to evacuate excess generation

• PPA prices - need to be aligned to retail tariffs

Our value added to your RE project

• Possibility to fund in local currency

• One-stage investment approval process

• Flexible finance structures

• Funding from Small scale to large scale projects

• Funding direct from our balance sheet

• Local expertise through our country offices

Policy / What we look for

• Transaction size € 1-15 million (preferably > 5 mln.)

• Proven technology

• Experienced developers / investors

• Market standard risk mitigation (due diligence)

• Limited dependency on government / subsidies

• High Standards on Environmental and Social Impact

Oikocredit

Thank You!

Maite Pina

Investment Officer

M: +31 62 564 34 02

E: mpina@oikocredit.org

Disclaimer

This document was produced by Oikocredit, Ecumenical Development Cooperative Society U.A. (Oikocredit International) with the greatest of

care and to the best of its knowledge and belief at the time of writing. The opinions expressed in this document are those of Oikocredit

International at the time of writing and are subject to change at any time without notice. Oikocredit International provides no guarantee with

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Every investment involves risk, especially with regard to fluctuations in value and return. It should be noted that historical returns and financial

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Oikocredit International is a cooperative society with limited liability (coöperatieve vereniging met uitgesloten aansprakelijkheid) under the laws

of the Kingdom of the Netherlands.