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SDG INDONESIA ONE
GREEN FINANCE FACILITY
Project name:
SDG Indonesia One-Green Finance Facility (SIO-GFF)
Year:
2020
Funding:
$600 million in phases
Modality:
Loan
Department:
SERD
Sector:
Finance
Team:
Anouj Mehta Nguyen Ba Hung
CHALLENGE: Lack of a large-scale pipeline of
bankable green infrastructure projects
PIPELINE
Underutilization of capital markets and instruments for accessing private financing sources
Without accelerated e orts,
unlikely to achieve Sustainable Development Goals (SDGs)
SOLUTION
Establishment of an integrated platform
SDG Indonesia One-Green Finance Facility (SIO-GFF)
Utilize public resources to catalyze private funds
Channel into infrastructure projects to achieve SDGs
Commercial Financing
Project Development
Concessional Funds for De-Risking
Equity Fund
4 pillars:
tailored to the appetite of donors and investors
ADB’s assistance aims to support Indonesia in developing a financing mechanism able to link provision of concessional debt funds to projects with clear green targets, financial bankability thresholds, and roadmaps for private capital funds flows. Linkages of green targets to the SDGs will be utilized for overall monitoring of achievements.
NEXT STEPS
Finalization of the institutional structure and financial mechanics for operationalizing SIO-GFF and preparation of ADB loans.