FEI Project Preparation Facility
Empowering Clean Energy Initiatives
FEI can support its future portfolio companies with its Project Preparation Facility (PPF). The PPF is a USD10m returnable grant facility provided by the Global Environment Facility (GEF) designed to:
- cover due diligence costs incurred by future portfolio companies in the process of obtaining financing from FEI (the PPF Project Preparation Window) and
- provide reimbursable funding for mini-grid projects and projects in the most challenging and vulnerable markets (the PPF Blended Finance Window).
Project Preparation Facility (PPF) Window Overview
PPF – Project Preparation Window
PPF – Blended Finance Window
Purpose
Provide reimbursable grants to support renewable energy projects that fall within FEI’s mandate to enable them to achieve conditions precedent for first disbursement i.e., Financial Close
Provides concessional reimbursable grants, blending PPF resources with the FEI’s commercial funding.
Eligible Transactions
Any transaction eligible under the FEI Investment Policy that obtained first level of approval by the Investment Committee.
Lend to (i) renewable energy projects in transition states and fragile contexts, and (ii) mini-grids projects.
Activities Supported
Technical Activities, Environmental & Social (E&S) activities, Legal Activities, Market studies, Tax, financial and accounting activities, Insurance Activities
Transactions that FEI has committed to financing with long-term debt, which meet the criteria set out above.
PPF – Project Preparation Window
Purpose
Provide reimbursable grants to support renewable energy projects that fall within FEI’s mandate to enable them to achieve conditions precedent for first disbursement i.e., Financial Close
Eligible Transactions
Any transaction eligible under the FEI Investment Policy that obtained first level of approval by the Investment Committee.
Activities Supported
Technical Activities, Environmental & Social (E&S) activities, Legal Activities, Market studies, Tax, financial and accounting activities, Insurance Activities
Terms & Conditions
Grant Amount: up to USD 600,000Cost Sharing: Minimum of 20% of each PPF Activity must be funded by Equity Contributions.
Cost Cap: Project Grant cannot exceed 50% of total Project Development Costs to be spent up to Financial Close.
Reimbursements: Between Financial Close and October 2027
Pricing: Lower of 2% fixed rate p.a. and 6-month terms SOFR.
PPF – Blended Finance Window
Purpose
Provides concessional reimbursable grants, blending PPF resources with the FEI’s commercial funding.
Eligible Transactions
Lend to (i) renewable energy projects in transition states and fragile contexts, and (ii) mini-grids projects.
Activities Supported
Transactions that FEI has committed to financing with long-term debt, which meet the criteria set out above.
Terms & Conditions
Grant Amounts: Up to USD 3 million per transaction, subject to a minimum 1:2 Co-Investment Ratio, which is the ratio between the Blended Finance and FEI commercial debt
Reimbursements: Between Financial Close and October 2027
Pricing: Lower of 2% fixed rate p.a. and 6-month terms SOFR.