Preface Facility

Integral Capital Africa’s first facilty under management is a small project pre-finance facility known as PREFACE. The PREFACE concept was developed in 2006 by Integral Advisory and registered in 2008 as a not-for-profit venture to act as a catalyst to funding and investment in small scale infrastructure projects.

Energy, sustainable forestry and climate change are key elements of immediate concern to PREFACE, which is designed as an incubator for financing mechanisms and models with a positive impact on rural communities.

The PREFACE POC (Proof of Concept) model has three pivotal components:

»   Transaction development support, defined as the range of activities that preclude implementation
     of a  sustainable small scale infrastructure project—e.g. rapid reviews, feasibility
     studies, transaction advise, incidental transaction development costs and financial
     closure of projects;

»   Access to capital, which refers to facilitation of financing of projects and end-users of
     environment-related  products and services, taking into account capacity building and barrier
     removal related to finance—typically, tenor, cost and security;

    Provision of seed capital and management of negotiations between parties, as well as
    assistance in structuring of the energy finance products such as project and asset
    finance are key considerations;

»   Market development, which covers the whole range of activities that will catalyse
     demand, enabling the conversion of potent demand for renewable and sustainable
     environmental resources into effective demand.