Re: What benefits do LDCs get

Anonymous — Fri, 13 Jun 2008 13:41:22 GMT

The purpose of FMO's LDC Infrastructure Fund (the Fund) is to contribute towards the construction and improvement of social and economic infrastructure in Least Developed Countries by providing financing through loans, equity, grants and credit guarantees which meet Official Development Aid (ODA) criteria. Financing is intended to facilitate commercially managed, private-public infrastructure investments which are both sustainable and socially responsible. Investments should serve as a catalyst to other sources of financing.

Amount:
Total Fund capital €208 million.

Starting principles:
• The focus is on infrastructure investments:
- Energy production and distribution
- Telecommunications
- Water supply and distribution
- Fixed infrastructure (ports, airports, railways, roads)
- Mobile infrastructure (ships, trucks, wharfs)
- Environmental infrastructure (waste processing, water purification, dumpsites)
- Social infrastructure (health care and education)
• The Fund is only applicable to LDC’s published annually in the OECD’s DAC-I list;
• Investments must fit in with the infrastructure policy plans of the countries concerned;
• Investments must contribute positively to combating poverty (employment opportunities, development and involvement of local business community);
• Investments can be either equity, subordinated/senior loans, grants, guarantees and combinations of these;
• The risk/return profile of the financial instrument must be on market terms;
• Grants may be used to finance non-commercial aspects which have significant development relevance in projects which are otherwise profitable (post-grant);
• The Fund can invest in profitable international/multilateral funds which promote infrastructure financing in the targeted sector(s), in the target markets relevant to the Fund;

Minimum conditions for LDC Fund financing:

Equity Participations:
• Maximum €21 million per transaction (10% of Fund capital) in the case of project finance.
• Maximum €10 million per transaction (5% of Fund capital) in the case of companies.
• All equity participations must incorporate exit agreements.

Subordinated and Senior loans:
• Maximum €21 million per transaction (10% of Fund capital).
• Term up to 20 years, repayment-free (grace) period possible up to 10 years.
• Currency USD, EUR or local currency.

Grants:
• Intended for non-commercial elements of infrastructure investments.

Re: What benefits do LDCs get - MIRAI Initiative

Anonymous — Tue, 20 May 2008 21:46:53 GMT

It is not clear to me whether Japan's MIRAI Initiative is applicable to all LDCs or only to low-income LDCs. The World Bank does not classify the following countries as LDCs: Djibouti, Kiribati, Maldives, Samoa, Tuvalu and Vanuatu.

Re: What benefits do LDCs get

Adam Rogers — Fri, 16 May 2008 18:46:08 GMT

Thank you to the above posters who highlighted UNCDF's work in the Least Developed Countries.

UNCDF invests in LDCs through grants, loans, and technical assistance to support them in their efforts to reduce poverty and improve livelihoods in a direct, concrete and measurable way. The long-term goal to reduce poverty in the LDCs is achieved through its two practice areas – local development and inclusive finance.

Readers who are interested in reading UNCDF's 2007 Results-oriented Annual Report can download it from the Executive Board's website at
http://www.undp.org/execbrd/adv2008-annual.shtml

For readers who would like to learn more about what UNCDF is doing to support development in the LDCs, please visit our website at www.uncdf.org.

Regards,

- Adam Rogers

CDP Blog - What benefits do LDCs get

Re: What benefits do LDCs get

Re: What benefits do LDCs get - MIRAI Initiative

Re: What benefits do LDCs get