2.4 SIF mandates, examples from case studies

TABLE 2.4 SIF mandates, examples from case studies

SIF DOUBLE BOTTOM LINE MANDATE

Asia Climate Partners To offer the largest, fully fledged private equity investment platform for environmental finance in emerging Asiaa

FONSIS (Senegal) To catalyze additional financial resources from local and international third parties to cofinance key local projects in strategic industriesb Investment strategy dictates it must achieve a rate of return in excess of the average cost of state borrowingsc

Ireland Strategic Investment Fund To invest on a commercial basis in a manner designed to support economic activity and employment in Ireland

Marguerite Funds To invest, on a commercial basis, in policy-driven infrastructure projects in the European Union and preaccession states, based on a list of eligible sectors and with particular focus on greenfield infrastructure

National Investment and Infrastructure Fund (India) To invest in infrastructure assets and related businesses that are likely to benefit from the long-term growth trajectory of the Indian economy To generate attractive long-term risk-adjusted returns for investors on a sustainable basisd

ALIGNMENT WITH SOVEREIGN / QUASI SOVEREIGN’S POLICY PURPOSE

To demonstrate the possibility of investing in green finance in Asia on a commercial basis while adhering to rigorous ESG practices; focus is predominantly on investments in companies established in ADB developing member countries To support implementation of Plan Sénégal Emergent, which aims to make Senegal an emerging economy by 2035 (although fund has flexibility to invest outside of the plan)

To attract capital and stimulate economy after the global financial crisis (reflected in initial strategy) To address five key economic priorities: indigenous industry, regional development, sectors adversely affected by Brexit, climate change, and housing supply (reflected mandate after 2018)

To stimulate greenfield infrastructure investments in the European Union, catalyzing private investment, and to set an example of long-term investment

To catalyze foreign institutional equity capital to the Indian infrastructure sector

SECTORS OF FOCUS

Renewable energy, resource efficiency, environmental industries

Agriculture, infrastructure, industry, energy, mining, ICT, financial services, real estate and tourism, health care, and education

Housing, water, energy, airport, ports, food, agriculture, information technology, life sciences, and so on

Infrastructure: transport, energy and renewables, telecommunications, and water

Infrastructure and related sectors

Nigeria Infrastructure Fund To make a positive financial return on its investments in the infrastructure sector in Nigeria To attract and support foreign investment and enable growth To follow a rolling five-year plan, developed each year, that seeks to develop essential and efficient infrastructure in Nigeria while also ensuring financial returns Primarily infrastructure, with emphasis on agriculture, health care, power, and motorways

Source: World Bank; see case studies in appendix A. Note: ADB = Asian Development Bank; ESG = environmental, social, and governance; FONSIS = Fonds Souverain d’Investissements Stratégiques (Sovereign Fund for Strategic Investments); ICT = information and communication technology; SIF = strategic investment fund. a. See the Asia Climate Partners website (http://www.asiaclimatepartners.com/about.php?id=18), accessed December 31, 2019. b. Based on a presentation by FONSIS chief executive officer at the International Forum of Sovereign Wealth Funds Annual Meetings, Juneau, September 2019. c. See FONSIS case study in appendix A. d. See the National Investment and Infrastructure Fund website (https://niifindia.in/).