INTERACT CLIMATE CHANGE FACILITY S.A. is a private limited liability company established under the laws of the Grand Duchy of Luxembourg, and is owned by 13 shareholders. ICCF finances renewable energy and energy efficiency projects in the private sector in developing countries and emerging markets.
The funding capacity of ICCF is provided by Agence Française de Développement, the European Investment Bank (EIB) and by the following 11 EDFI members: BIO (Belgium), CDC (United Kingdom), COFIDES (Spain), DEG (Germany), FINNFUND (Finland), FMO (the Netherlands), NORFUND (Norway), OeEB (Austria), PROPARCO (France), Sifem (Switzerland) and SWEDFUND (Sweden).
The operational structure of ICCF is unique among the institutional investors, and is characterised by an efficient and fast track process with low administrative overheads. The operation of ICCF is regulated by the Master Investment Agreement, which delegates full authority for investment decisions to the Investment Committee, which is composed of representatives from the institutions, which have committed funds to ICCF.
Secretarial services are provided by the EDFI Secretariat in Brussels, while the statutory tasks are undertaken by a domiciliation agent in Luxembourg. The company is audited by PriceWaterhouseCoopers, appointed by the shareholders at the AGM, and by an internal audit committee, appointed by the Board of Directors.
A Promoting Partner – any one of the thirteen EDFI members being shareholders – may present funding proposals for projects located in eligible countries to the Investment Committee. Authorised Financial instruments are Senior Loans and Mezzanine Debt. ICCF will fund up to 75% of the total combined financing of ICCF and the Promoting Partner. The financing from ICCF is from €10 mln to €45 mln per project.
The Investment Committee evaluates project proposals and grants approval in a two-step process:
(1) Clearance In Principle followed by
(2) Final Approval
Once approved, the Investment Committee delegates authority to the Promoting Partner to undertake due diligence, establish the legal contracts and monitor the project company on behalf of ICCF.
The investee company will sign a legal contract with the Promoting Partner only and will thus communicate and report only to the Promoting Partner. The Promoting Partner is responsible for the monitoring and communication to ICCF and the underlying partners funding the operations.