Consideration of funding proposals  Addendum X Funding proposal package for FP027

The Universal Green Energy Access Programme (UGEAP) is a proposed USD 500 million investment fund managed by Deutsche Bank AG to increase electricity access in Sub-Saharan Africa. The program focuses on three categories: solar home systems, green mini-grids, and industrial renewable energy solutions. It utilizes a two-tiered capital structure (Class A and Class B) to leverage private sector investment, with the Green Climate Fund (GCF) providing subordinated B-Capital to act as a risk buffer. The program will be rolled out in two phases, initially targeting Benin, Kenya, Namibia, Nigeria, and Tanzania, before expanding across Sub-Saharan Africa. UGEAP intends to provide long-term debt through local financial institutions using Funding and Risk Participation Agreements (FRPA) and syndicated loans to overcome structural barriers in local financial markets.

• The UGEAP is designed as a USD 500 million investment fund with a 15-year maturity, aiming to execute approximately 50 investments over a 5-year initial investment horizon.
• The program uses a two-tiered capital structure where Class B Capital (including GCF and other public investors) provides a risk buffer for Class A Capital (private sector investors).
• The GCF is requested to contribute a total of USD 132 million in B-Capital, split between USD 80 million for Phase 1 and USD 52 million for Phase 2.
• The program targets three specific investment categories: Category 1 (Off-grid solar home systems), Category 2 (Green mini-grids), and Category 3 (Industrial renewable energy and selected on-grid installations).
• Phase 1 of the roll-out focuses on five specific host countries: Benin, Kenya, Namibia, Nigeria, and Tanzania.
• UGEAP employs two primary financial instruments to deliver capital: Funding and Risk Participation Agreements (FRPA) for Categories 1 and 2, and Syndicated Loans for Category 3.
• The program aims to mitigate over 50 million tonnes of CO2 equivalent (tCO2e) over its lifetime if repayments are reinvested, reaching a total investment volume of USD 2.1 billion.
• The program targets significant socio-economic co-benefits, including the creation of 15,000 direct jobs and providing first-time electricity access to 461,400 energy consumers by year 15.
• A key objective is to overcome the asset-liability mismatch in local African banks, where short-term liabilities prevent the provision of the 7-10 year loan maturities required for renewable energy projects.
• Deutsche Bank will act as both the Investment Manager and Placement Agent, receiving a management fee of 1.5% p.a. on invested capital and 0.5% on committed capital.

APA

Green Climate Fund (2016). Consideration of funding proposals  Addendum X Funding proposal package for FP027. https://www.greenclimate.fund/sites/default/files/document/gcf-b14-07-add10.pdf

Chicago

Green Climate Fund. Consideration of funding proposals  Addendum X Funding proposal package for FP027. 2016. https://www.greenclimate.fund/sites/default/files/document/gcf-b14-07-add10.pdf.

Wikipedia

{{cite report |author=Green Climate Fund |title=Consideration of funding proposals  Addendum X Funding proposal package for FP027 |date=27 September 2016 |url=https://www.greenclimate.fund/sites/default/files/document/gcf-b14-07-add10.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{greenclimatefund2016consideration, author = {{Green Climate Fund}}, title = {{Consideration of funding proposals  Addendum X Funding proposal package for FP027}}, institution = {Green Climate Fund}, year = {2016}, month = sep, url = {https://www.greenclimate.fund/sites/default/files/document/gcf-b14-07-add10.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }