Investment Structure Establishment
PJ and Company has assisted numerous organizations in establishing new investment platforms and funds. They do this by advising on various aspects of fund structure, asset allocation and underwriting models, as well as material terms of standard legal financing agreements and even financial models. They have also identified, and brought onboard, co-financing partners in a number of cases. You can read through their case studies below.
Investment Structure Establishment
PJ and Company has assisted numerous organizations in establishing new investment platforms and funds. They do this by advising on various aspects of fund structure, asset allocation and underwriting models, as well as material terms of standard legal financing agreements and even financial models. They have also identified, and brought onboard, co-financing partners in a number of cases. You can read through his case studies below.
Case Studies
UNDP – Credit Guarantee Fund Ethiopia
The government of Ethiopia required support in providing electricity to the millions of households that currently don’t have access to power. And by extension also reducing pressure on indigenous forest resources. This is why the United Nations Development Programme (UNDP) and the Ministry of Water, Irrigation and Electricity (MoWIE), with support from United Nations Capital Development Fund (UNCDF), initiated a project. One that would see the implementation of a more market-based approach towards promoting renewable energy technologies in rural communities all throughout Ethiopia and even impact African renewables in general.
A key pillar of this strategy was the operationalization of a Credit Risk Guarantee Fund, to provide partial credit risk guarantees and to increase the availability of capital for investments (CAPEX) or working capital requirements (opex) of RET enterprises. Particularly, for the distribution of solar home systems, bio-digesters (anaerobic digesters) producing biogas, and clean cookstoves. Work involved legal structuring, tender documentation, capital adequacy and accounting treatment advice, material contract terms, and governance structures.
UNCDF LDCIP
The Least Developed Economies Investment Platform is a pilot infrastructure providing commercial lending to private sector SMEs in the most impoverished countries in the world. It lends based on strict commercial underwriting principles and prices the lending risk accordingly. On certain occasions, this capital is blended with concessional financing to accelerate the development or sustainability of a particular business. Work included the creation of a fund specific loan underwriting tool, forex hedging, investment policies and procedures, standard financial models, structuring and standard financing documentation and material terms for client lending in a number of least developed economies. PJ and Company now sits on the Investment Committee for this facility.
Carbon Credit Note
The Carbon Credit Note was the world’s first listed Carbon Investment vehicle. It was listed on the equities platform on the JSE Securities Exchange in South Africa in 2004. It was innovative not only because it was the first listed product in the Clean Development Mechanism of the UNFCCC (as well as predating the formal launch of the EUA trading market in Europe), but it was also the first inwardly listed financial product on the JSE. It was also the second inward listing on the exchange in its history.
PJ and Company conceptualized the financial product, conducted all negotiations with regulatory bodies in South Africa and Mauritius, including with the FSC, the FSB, the Reserve Bank, SARS and the JSE Securities Exchange. He negotiated the counterparty agreements with Eco-securities in the USA and Australia, managed the legal and technical supplier contracts, banking and Trustee relationships and finally led the distribution and product marketing too.
Nepal Credit Guarantee Fund
Through use of a blended finance instrument and capacity building activities the project aims to mainstream commercial lending for small-scale renewable energy (RE) projects in Nepal; build capacity among key stakeholders at province level for upscaling RE programmes. As part of this programme, the project is establishing a Credit guarantee facility (CGF) in partnership with NMB Bank Ltd, SNV Netherlands Development Organization (SNV) and the Alternative Energy Promotion Centre (AEPC).
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PJ & Company is a respected firm of independent consultants across a variety of fields that can benefit almost any enterprise, from SMEs to large corporates and even national governments or NGOs.
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