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projet FRONTIER II
rontier Energy II is a fund investing in renewable energy projects in the development or operation phase in East Africa. This equity investment in the fund will increase the share of renewable energy projects in the region.
Client presentation
Frontier Investment Management is incorporated in Denmark with main offices in Copenhagen and Nairobi, and project offices in Kampala, Kigali, and Dar Es Salaam. Frontier Investment Management is characterized by an integrated hands-on approach to project development, financing, construction and operation.
Project description
Frontier Energy II is a successor fund to DI Frontier Market Energy & Carbon Fund (60m EUR fund established in 2011) with similar focus and strategy, which has invested in a broad portfolio of renewable energy projects that are now under development, construction, and operation in East Africa. Frontier Energy II will build on - and benefit from - the experience, portfolio and market position established during the last 6 years by the fund manager, Frontier Investment Management. First close commitment of Frontier Energy II is USD 116 million from a combination of private investors and the following development finance institutions: CDC Group, GEEREF, FMO, Proparco, Swedfund, and Development Bank of Austria (OeEB).
Project impact
The fund will increase the share of renewable energy projects in the area, with the objective of an additional installed capacity of 491 MW. Consequently, the investment will have a positive impact on the environment by reducing CO2 emissions by 1.34 Mt during the project lifecycle. The project will also contribute to supporting employment and training for local populations. Indeed, we estimate that the project will support some 4,600 jobs, including 4,200 related to infrastructure construction.
21/03/2017
Date of signature of the project
Multi-country Africa
Location
Financing tool
15 000 000 Euros
Amount of funding
Equity investment of USD 15m
Financing details
FRONTIER ENERGY II Alpha K/S
Client
CES