| Aloe III |
| Summary of Proposed Investment |
| This Summary of Proposed Investment is prepared and distributed to the public in advance of the IFC Board of Directors’ consideration of the proposed transaction. Its purpose is to enhance the transparency of IFC’s activities, and this document should not be construed as presuming the outcome of the Board decision. Board dates are estimates only. |
| Project number | 30748 |
| Company name | Aloe III |
| Country |
| East Asia and Pacific Region |  |
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| Sector1 | Private Equity/Venture Cap Fund - Regional |
| Environmental category | FI-Financial Int |
| Department | Reg Ind, Financial Markets, ASIA |
| Status | Pending Disbursement |
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| Date SPI disclosed | November 23, 2011 |
| Projected board date | January 31, 2012 |
| Previous Events | Signed: June 1, 2012
Approved: May 29, 2012 |
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| Overview |
Sponsor/Cost/Location |
Development Impact |
Contacts |
Attachments |
| Project description |
| Aloe Environment Fund III (“Aloe III” or the “Fund”) is a ten-year private equity fund that will make investments in companies whose main business activities sustain, restore and improve the environment. The companies will either be based in the developing countries of Asia or are planning to expand into these countries. Sectors of focus include clean energy, waste recycling and eco processes. The Fund has a target size between €200 million and €300 million and will be managed by Aloe Private Equity (“Aloe” or the “Fund Manager”). |
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| Project sponsor and major shareholders of project company |
| Aloe is one of the pioneering private equity fund managers dedicated to technology transfers in the environmental technology space from developed countries to emerging markets in Asia. Aloe was founded in 2004 by partners Mr. Jean-Pascal Tranié and Mr. Vivek Tandon, former executives at Viventures Partners, then the venture capital arm of Vivendi Universal. To date, Aloe has managed three funds namely Aloe Environment Fund I, Aloe Environment Fund II and a parallel fund to Aloe Environment Fund II, called Green Investment Asia Sustainable Fund, which was established to specifically focus on investing in developing countries in Asia. |
| Total project cost and amount and nature of IFC's investment |
| The Fund is targeting to raise between €200 million and €300 million commitments. IFC proposes an equity investment of the lesser of $25 million or 20% of the total commitments. |
| IFC investment as approved by Board |
| 25 million (USD) |
| Product Line | IFC Investment (million USD) |
| Risk Management | |
| Guarantee | |
| Loan | |
| Equity | 25 |
* These investment figures are indicative |
| Location of project and description of site |
| Aloe III is formed as a Mauritius incorporated company. Unless otherwise approved by its advisory board, the Fund will invest at least 80% of its capital in India, China and IFC’s mandated countries in Asia. |
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| Anticipated development impact of the project |
| The project is designed to have significant impact in (i) promotion of more environmentally sustainable practices, (ii) promotion of technology transfer from developed countries to emerging markets in Asia, (iii) support the development of a relatively new sector in the targeted countries, (iv) job creation, including in IDA Countries (e.g. India) and (v) reduction of carbon emissions. |
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| IFC's expected development contribution |
| IFC will play a significant and unique role in (i) catalyzing funding from various investors, including the development financial institution and international financial institution, (ii) co-investments, (iii) Fund structuring and governance, and (iv) implementation of environmental and social standards in the Fund's operations. |
| Environmental and social issues - Category FI-Financial Int |
| Aloe Environment Fund III has been classified as a Category FI project according to IFC’s Environmental and Social Review Procedure. Portfolio activities of the proposed new fund shall meet the requirements of the IFC FI Exclusion List, applicable host country national E&S laws and regulations, and the IFC Performance Standards. The Fund is required to implement an environmental and social management system (ESMS) to ensure its portfolio activities will meet the above requirements. IFC will have the rights to review the first three and all Category A investments of the Fund prior to their investment decisions to ensure the Fund's SEMS is operating adequately in identifying and managing E&S risks. The Fund is also required to provide an annual environmental and social performance report to IFC. |
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| For inquiries about the project, contact: |
Mr. Ludovic Both
Aloe Private Equity
34 boulevard Malesherbes,
Paris 75008 France
www.aloe-group.com
ludovic.both@aloe-group.com
Tel: +33 1 75 43 42 08
Fax: +33 1 45 53 32 13 |
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| For inquiries and comments about IFC, contact: |
General IFC Inquiries
IFC Corporate Relations
2121 Pennsylvania Avenue, NW
Washington DC 20433
Telephone: 202-473-3800
Fax: 202-974-4384
E Mail: Webmaster |
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