Fund Structure
The Fund has three sub funds details of which are set out below. The relevant prospectus, application form and key information are available for download under Fund Documentation or directly from the Managers at the address set out under Contact.
MDG Guarantee Fund
This is a bond fund with a 15 year maturity paying 1,75% fixed per annum and 3% accrued per annum at maturity. The proceeds of issue are invested in only in water optimisation projects. The political risks associated with these projects are guaranteed by the Multilateral Insurance Guarantee Agency ("MIGA") which is a member of the World Bank Group. No investment is made unless and until MIGA has issued its guarantee.
MDG Equity Fund
The fund makes equity investments in renewable and sustainable energy projects. The majority of the fund's projects are in the wind sector where the fund has a portfolio of 3,500 MW. The fund is also active in biomass and biofuel projects. The fund works with established developers with international reputations and invests in well structured bankable projects. Where possible, the fund works with Development Finance Institutions to provide debt finance.
MDG Bond Fund
This is a bond fund with a 15 year maturity. The first tranche, which is available for subscription until 31st July 2010, pays interest at 4.25% per annum at maturity. The fund is structured so that such proportion of the issue proceeds are invested in marketable invests in securities rated at least AA as shall ensure, subject to market risk, interest and principle at maturity. The remaining proceeds are invested in either water projects or renewable energy projects in the portfolio of either MDG Guarantee Fund or MDG Equity Fund.
Further detailed information on each sub fund is set out in the relevant prospectus.