CoPower, a clean energy investment firm, announced today the launch of a revolving warehouse credit facility seeded by The J.W. McConnell Family Foundation, the Ivey Foundation, and the Hamilton Community Foundation.
Designed jointly by CoPower and The McConnell Foundation, the innovative financing vehicle enables CoPower to finance clean energy projects more efficiently and accelerate the development of green investment products for individual investors. The revolving facility enables Foundations to leverage their capital repeatedly, multiplying their impact by enabling more investors to access CoPower green bonds, all while earning steady returns.
“We’re honoured to be partnering with these three leading foundations who are pioneers of impact investing in Canada,” says David Berliner, CoPower’s CEO and Co-Founder. “This catalytic capital accelerates our ability to unlock private investment dollars for distributed clean energy infrastructure.”
"This partnership and financial vehicle embodies our intention to be creative with our capital resources to support development and scaling of promising solutions,” says Erica Barbosa, Director of Solutions Finance at The McConnell Foundation. “It is inspiring to see CoPower advance the expansion of energy projects while also opening impact investing opportunities to individuals through a new financial instrument. We are thrilled to be supporting this innovative project with all our partners".
“One of the primary challenges in connecting capital supply and demand is time,” says Trish Nixon, CoPower’s Director of Investments. “Developers want to sign term sheets knowing capital is committed, while investors want products backed by existing projects loans that they can see and understand.”
How it works:
- Foundations lend to the CoPower Warehouse Facility, a Limited Partnership.
- CoPower makes senior, secured loans out of the facility to a portfolio of projects that satisfy specific criteria.
- CoPower issues green bonds to the retail investing public. Bonds are backed by the portfolio of loans, which generate revenue from energy savings or renewable energy production.
- The credit facility is replenished by the sale of bonds, and funds are made available for new project loans.
An increasing number of foundations globally are aligning investments from their endowment with their social purpose through impact investing -- the practice of intentionally investing for positive social and environmental impact alongside financial returns.
CoPower projects that with this initial investment of $3 million, the credit facility will mobilize $15 million for clean energy projects from approximately 2000 crowd investors. Through these projects, investors will collectively help to avoid up to 40,000 metric tonnes of carbon and help generate up to 380,000 kWh of clean energy.
For more information or interviews please contact:
Lauryn Drainie, Marketing Manager, CoPower, firstname.lastname@example.org, 647-465-3723
About CoPower: CoPower is a clean energy investment firm headquartered in Montreal with offices in Toronto. We help investors build and diversify their portfolio while building clean energy projects in communities across North America. The company has $7.2 million in assets under management. Learn more at https://copower.me/en/.
About The J.W. McConnell Family Foundation: The J. W. McConnell Family Foundation was founded in 1937, and is one of Canada’s largest private foundations. With a mission to “engage Canadians in building a society that is ‘inclusive, sustainable and resilient,” McConnell’s granting and impact investments are focused on multiple domains. From an endowment of $605 million (CAN), McConnell disburses 4% annually in grants. Its policy objective is to direct 10% of the endowment to impact investments (currently at 6%)
About The Ivey Foundation: The Ivey Foundation is a private charitable foundation located in Toronto, Canada. It was incorporated as The Richard Ivey Foundation on 31 December 1947 by the late Richard G. Ivey, Q.C.,LL.D., and his son Richard M. Ivey, C.C.,Q.C.,LL.D. The mission of the Foundation is to improve the well-being of Canadians by focusing its resources on selected issues of significance.
About The Hamilton Community Foundation: The Hamilton Community Foundation offers donors powerful opportunities to make a difference in the community. The Foundation is unique in that it enables donors to recommend grants to the widest possible range of charitable organizations and initiatives: arts and culture, health and human services, environment, recreation and education.