DCM RA ACF (IFC-46673)

Regions
  • East Asia and Pacific
  • South Asia
Geographic location where the impacts of the investment may be experienced.
Countries
  • India
Geographic location where the impacts of the investment may be experienced.
Financial Institutions
  • International Finance Corporation (IFC)
International, regional and national development finance institutions. Many of these banks have a public interest mission, such as poverty reduction.
Project Status
Proposed
Stage of the project cycle. Stages vary by development bank and can include: pending, approval, implementation, and closed or completed.
Bank Risk Rating
B
Environmental and social categorization assessed by the development bank as a measure of the planned project’s environmental and social impacts. A higher risk rating may require more due diligence to limit or avoid harm to people and the environment. For example, "A" or "B" are risk categories where "A" represents the highest amount of risk. Results will include projects that specifically recorded a rating, all other projects are marked ‘U’ for "Undisclosed."
Voting Date
Apr 24, 2024
Date when project documentation and funding is reviewed by the Board for consideration and approval. Some development banks will state a "board date" or "decision date." When funding approval is obtained, the legal documents are accepted and signed, the implementation phase begins.
Borrower
responsAbility Asia Climate Fund S.A., SICAF SIF
A public entity (government or state-owned) provided with funds or financial support to manage and/or implement a project.
Sectors
  • Climate and Environment
  • Energy
  • Finance
  • Transport
The service or industry focus of the investment. A project can have several sectors.
Investment Type(s)
Equity, Fund
The categories of the bank investment: loan, grant, guarantee, technical assistance, advisory services, equity and fund.
Investment Amount (USD)
$ 100.00 million
Value listed on project documents at time of disclosure. If necessary, this amount is converted to USD ($) on the date of disclosure. Please review updated project documents for more information.
Project Cost (USD)
$ 500.00 million
Value listed on project documents at time of disclosure. If necessary, this amount is converted to USD ($) on the date of disclosure. Please review updated project documents for more information.
Other Related Projects
Primary Source

Original disclosure @ IFC website

Updated in EWS Apr 1, 2024

Disclosed by Bank Mar 13, 2024

Contribute Information
Can you contribute information about this project?
Contact the EWS Team

Project Description
If provided by the financial institution, the Early Warning System Team writes a short summary describing the purported development objective of the project and project components. Review the complete project documentation for a detailed description.

According to the IFC, Asia Climate Fund (ACF) is a structured climate debt fund (in the process of being raised), with a primary focus on renewable energy, energy efficiency, electric mobility and climate tech opportunities focusing in India and other Southeast Asia markets. ACF seeks to raise up to US$500 million to provide senior secured, mezzanine and convertible debt, equity participation notes as well as technical assistance to the underlying Fund investees. 

The Fund will provide debt financing (secured debt, sub debt, mezzanine finance, and convertible debt) to corporates in South Asia and Southeast Asia. The Fund will primarily invest into:
(i) captive renewable energy projects such as solar, wind, energy storage etc., primarily in commercial and industrial (C&I) space, (a very limited extent in small sized utility scale projects);
(ii) energy efficiency sector which would support the C&I customers through IoT based energy management systems, industrial waste-water / waste recycling plants, energy efficient heating, cooling and lighting;
(iii) electric mobility sector comprising the value chain of e-mobility such as battery swapping, charging infrastructure, electric vehicle fleet operations, etc.; and
(iv) climate technology sector comprising new CO2 mitigation technology such as circular economy projects, climate smart warehousing, cold chains, industrial waste-water treatment plants etc.

Early Warning System Project Analysis
For a project with severe or irreversible impacts to local community and natural resources, the Early Warning System Team may conduct a thorough analysis regarding its potential impacts to human and environmental rights.

As stated by the IFC, overall, the E&S risk of the proposed investment is medium, and the project is categorized as FI-2 according to IFC's Policy on Environmental and Social Sustainability.

Investment Description
Here you can find a list of individual development financial institutions that finance the project.
Financial Intermediary
A financial intermediary is a bank or financial institution that receives funds from a development bank. A financial intermediary then lends these funds to their clients (private actors) in the form of loans, bonds, guarantees and equity shares. Financial intermediaries include insurance, pension and equity funds. The direct financial relationship is between the development bank and the financial intermediary.
Private Actors Description
A Private Actor is a non-governmental body or entity that is the borrower or client of a development project, which can include corporations, private equity and banks. This describes the private actors and their roles in relation to the project, when private actor information is disclosed or has been further researched.

As stated by the IFC, ACF will have multiple shareholders, including IFC, and will be managed by responsAbility Investments AG (“rA”). The first close of the Fund has already been completed in December 2023 together with Germany's development bank KfW, the Dutch development bank FMO and a German Family Office.

rA is a leading impact asset manager specializing in private market investments across three investment themes to directly contribute to the United Nations Sustainable Development Goals (SDGs): (i) Financial Inclusion, to finance the growth of Micro & SMEs; (ii) Climate Finance, to contribute to a net zero pathway; and (iii) Sustainable Food, to sustainably feed an ever-growing population. All of rA’s investment solutions target specific measurable impact alongside market returns.

Since its inception in 2003, rA has deployed over US$ 14 billion in impact investments. With over 268 employees collaborating across eight offices, as of March 2024 rA manages US$ 5 billion in assets across approximately 265 portfolio companies in 72 countries. Since 2022 rA is part of M&G plc, the international savings, and investments business, and contributes to enhancing M&G’s capabilities in impact investing.


Contact Information
This section aims to support the local communities and local CSO to get to know which stakeholders are involved in a project with their roles and responsibilities. If available, there may be a complaint office for the respective bank which operates independently to receive and determine violations in policy and practice. Independent Accountability Mechanisms receive and respond to complaints. Most Independent Accountability Mechanisms offer two functions for addressing complaints: dispute resolution and compliance review.

General IFC Inquiries - IFC Communications:

Address: 2121 Pennsylvania Avenue, NW, Washington DC 20433
Telephone: +1 202-473-3800
Fax: +1 202-974-4384

Financial Intermediary - responsAbility Investments AG:

Henk Nijland - Head Business Development DFIs & Public Investors
Phone: +41 44 403 0688
Email: henk.nijland@responsability.com
Address: Zollstrasse 17, 8005 Zürich, Switzerland
Website: https://www.responsability.com/

ACCESS TO INFORMATION

You can submit a request for information disclosure at: https://disclosures.ifc.org/#/inquiries

If you believe that your request for information from IFC has been unreasonably denied, or that this Policy has been interpreted incorrectly, you can submit a complaint at the link above to IFC's Access to Information Policy Advisor, who reports directly to IFC's Executive Vice President.

ACCOUNTABILITY MECHANISM OF IFC/MIGA

The Compliance Advisor Ombudsman (CAO) is the independent complaint mechanism and fact-finding body for people who believe they are likely to be, or have been, adversely affected by an IFC or MIGA- financed project. If you submit a complaint to the CAO, they may assist you in resolving a dispute with the company and/or investigate to assess whether the IFC is following its own policies and procedures for preventing harm to people or the environment. If you want to submit a complaint electronically, you can email the CAO at CAO@worldbankgroup.org You can learn more about the CAO and how to file a complaint at http://www.cao-ombudsman.org

How it works

How it works