Question Period Note: Development Finance Institute Canada - FinDev Canada

Status update

• FinDev Canada is up and running: its governance structure is in place, six transactions have been completed, and others are under development.

• FinDev Canada contributes to Canada's international development and poverty alleviation efforts by catalyzing private investment and addressing needs that are not supported by traditional financial institutions or traditional international aid programs.

• FinDev Canada expands Canada's development finance toolkit by providing commercial, financial services to support private-sector investment in developing countries.

FinDev Canada launched its operations in January 2018. Its CAD 300M of capital comes from Export Development Canada. FinDev Canada's Board of Directors provides oversight to ensure that the institution delivers on its strategic directions. An Advisory Council provides external expertise to help FinDev Canada deliver development impacts. A managing director leads the organization's day to day management.

Consistent with the Feminist International Assistance Policy, FinDev Canada supports sustainable development, women's economic empowerment and gender equality, as well as climate change mitigation and adaptation through financial support to developing countries' private sectors.

Six investments have been made as of November 2019. In March 2018, the institution made its first investment (CAD 13.2M) in M-KOPA, a Kenya-based company that provides clean energy to off-grid households and provides quality jobs to hundreds of women in East Africa. A second investment was announced in December 2018; a CAD 26.4M commitment to Climate Investor One, an investment facility within the Dutch Development Bank, FMO, to support the transition to renewable energy in emerging markets, helping avoid approximately 1.2M tons of CO2 emissions. A third one followed in May 2019; a CAD 16.5M commitment to EcoEnterprises III, an investment fund that provides capital to SMEs operating in sensitive ecosystems in Latin America. The fourth deal was announced in June 2019; a CAD 10.56M loan to Danper Agricola that aims to create jobs, improve environmental management and support women's economic participation in Peru's agriculture sector. Investments five and six were concluded in November 2019. They are: a CAD 9.9M investment in Alitheia, a gender-lens investing fund supporting women-owned and led businesses in Sub-Saharan Africa; and a CAD 9.9M investment in Africa Forestry Fund II, an equity fund focused on acquiring and developing environmentally-friendly forestry value chain assets across Sub-Saharan Africa.

FinDev Canada is engaged in advanced negotiations for additional investments, which should be completed and announced in the near future.

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