The Global Environment Facility (GEF) invites GEF Partner Agencies to submit proposals and investment
opportunities under the Non-Grant Instrument Program (the GEF-7 “NGI Program”).
Since 2008, the GEF and its Partner Agencies have successfully
used a wide array of non-grant instruments such as debt, equity and guarantees
to attract private sector investment and deliver global environmental benefits
beyond business as usual.
Funding Information
- The maximum financing amount
per project/program is USD 15 million.
- The maximum maturity of the
financing is 20 years but in equity investments.
Eligibility Criteria
Proposals must meet the following criteria to be
eligible for the NGI Program financing:
- Geography: project beneficiaries must be in eligible GEF
recipient countries;
- GEF Partner Agency eligibility
requirements: the GEF will accept
proposals submitted by Partner Agencies that are eligible to administer
concessional finance as described in the Guidelines of Project and Cycle
Policy. Partner Agencies will submit information regarding their
compliance with these requirements.The Partner Agencies will also be
required to comply with the reflows procedures established in their
respective Financial Procedures Agreement with the GEF Trustee.
- Modalities: middle-sized projects, full-sized projects and
programs;
- Non-grant instruments: include but are not limited to:
- debt,
- risk mitigation products or
- equity instruments disclosed
in Policy - Non-Grant Instruments, FI/PL/02, October 10, 2014;
- Alignment with GEF-7
programming directions.
Selection Criteria
The selection criteria will focus on the
following:
- Scalability: Specific emphasis
will be placed in financial structures or investment platforms aimed at
scaling-up proposals beyond “one-by one” projects. Partner Agencies are
encouraged to submit a transaction diagram in the Project Justification or
Programmatic Justification sections of the PIF/PFD respectively.
- Investment platforms that
combine grant and non-grant investment services;
- Capital markets transactions;
- Structured finance;
- Investments aligned with GEF-7
Impact Programs, such as value chains in agribusiness and commodities;
- Appropriate and enhanced
co-financing ratios in line with the intended impact of the proposal and
in the context of each focal area and country capacity;
- Attractive financial terms.
Each proposal will be requested to submit a termsheet with indicative
terms and conditions.
- High financial additionality:
In the termsheet, each proposal must specify:
- the financing barriers
addressed with the GEF blended finance resources and
- quantification of financial
additionality;
- Capacity to generate reflows:
Any financial returns/gains/interests earned on non-grant instruments,
will be transferred to the GEF Trust Fund as noted.
- Innovative financial solutions.
These include but are not limited to: digital and technology solutions for
environmental protection, platforms linking major suppliers and consumers
in the supply chain, fintech, block chain, special purpose vehicles, or
multi-stakeholder platforms, among others.
- Global environmental benefits.
Proposals will be evaluated based on their contribution to GEF focal
areas, Impact Programs and their capacity to generate global environmental
benefits.
Post Date - 12-Jul-2021