MSEF II

MSEF II (MGM Sustainable Energy Fund II) will invest primarily in equity, quasi-equity and mezzanine project finance opportunities in energy efficiency targeted at the commercial, municipal and industrial sectors, that optimize energy consumption and lower equipment maintenance and replacement costs as well as in projects that generate electricity-i.e. electricity, cool air, and/or hot water, from industrial waste or by-products. The Fund will also pursue opportunistically small-scale renewable energy investments at early stage of development. The Fund will structure its energy efficiency (EE) investments through self-redeemable contracts that will provide steady and predictable cash flows over a period of years to the Fund. The Fund will create fully owned local SPVs that own the energy efficiency assets. The assets will be transferred to the clients (SMEs mainly) at the end of the contract. The Fund’s offer is an appealing source of finance for local entrepreneurs as no upfront investment is needed and it does not distract a client’s day-to-day operations as the Fund takes care of the EE operations. Cutting-edge technology and innovative approaches to resource re-utilization become accessible to a wider market. Investments in energy efficiency and renewable energy will lower GHG emissions and promote the use of alternative sources of energy, contributing to sustainable development.