CIRCULATE CAPITAL OCEAN FUND I - B

Promoter – Financial Intermediary

COUNTERPART(S) TO BE DETERMINED

Location

• Regional - Asia

Description

Equity participation in a private equity fund investing in small and medium-sized enterprises (SMEs) that prevent ocean plastic pollution and advance the circular economy in Asia.

Additionality and Impact

The Fund will support companies that reduce plastic waste and related discharge to oceans. This operation is well aligned to EU policy objectives of supporting the transition to a more circular economy and to the EU waste hierarchy presented in the EU Waste Framework Directive (2018/851) and in the new EU Circular Economy Action Plan.

The Fund investments will generate positive externalities in the form of increased material recovery and reduced discharge of plastics and other waste in urban environments and to the sea.

The Fund strategy is in line with the objectives of the EIB Climate Bank Roadmap and the Clean Oceans Initiative. EIB commitment will contribute to EU policy and priorities with regards Climate Action outside of Europe. It will support the achievement of sustainable development goals (SDGs), aiming to limit climate change. The Fund will contribute to the Bank's Climate Action and Environmental Sustainability targets outside the EU. Therefore, the operation is proposed under the Climate Action and Environment Facility (CAEF). EIB commitment is expected to trigger the commitment from other investors and to have a strong catalytic effect. With EIB commitment, the Fund's terms are expected to be negotiated in line with best market practice standards.

Objectives

The fund aims to provide equity and quasi-equity support to SMEs that prevent plastic pollution and advance the circulate economy in Asia. The fund will target investments mainly in India, Indonesia, Thailand, Vietnam, the Philippines, and Malaysia. The fund has a focus on companies with positive climate and sustainability impact in line with the objectives of the EIB Climate Bank Roadmap and the Clean Oceans Initiative. The fund will support the achievement of a number of sustainable development goals including SDG13 (Climate Action) and SDG14 (Life Under Water). The fund's target size is up to USD 80-100 million.

Sector(s)

• Industry - Manufacturing
• Industry - Water supply; sewerage, waste management and remediation activities
• Solid waste - Water supply; sewerage, waste management and remediation activities

Proposed EIB finance (Approximate amount)

USD 20 million (EUR 17 million)

Total cost (Approximate amount)

USD 100 million (EUR 85 million)

Environmental aspects

The fund's operational guidelines will provide for environmental and social due diligence of investee companies according to guidelines acceptable to the Bank.

Procurement

The fund is expected to comply with the EIB's procurement guidelines.

Status

Signed - 16/12/2021