📋 Tender Overview
Website customer/investment
https://www.rgreeninvest.com/
Region
Africa
Country
Africa
Sector
Energy
Publication date
8/16/2023
Effective date
4/4/2024
Total FMO financing
EUR 10.00 MILLION
Funding
Building Prospects
Environmental & Social Category
(A, B+, B or C)
A
Translation
https://www.fmo.nl/afrigreen-debt-impact-fund-slp
Who is our customer
The Afrigreen Debt Impact Fund SLP (the Fund , or Afrigreen ) is a senior debt, closed-end debt fund to be managed by RGreen Invest SAS ("RGreen"), an asset manager specializing in energy transition, climate change mitigation and adaptation. RGreen will be advised by Echosys Invest SAS, a joint venture between RGreen and Echosys Advisory.
What is our funding objective
FMO's investment in the Fund is expected to be up to EUR 10 million. Afrigreen will provide medium to long-term financing to promote climate mitigation and GHG reduction investments, mainly focusing on companies (developers) offering energy solutions for the Commercial & Industrial sector. Financing will target projects in Africa, focusing in Central and Western Africa.
Why do we fund this investment
Afrigreen will answer to the urgent need to scale up clean energy solutions in Central and West Africa, where there is scarce network capacity to accommodate the needed capacity to fulfill the growing demand for electricity. Debt financing for small to medium scale (decentralized) energy projects in Africa is considered particularly scarce. The Fund intends to have substantial impact by targeting an underserved market and would provide a mix of structured debt solutions targeting different technologies to help support swift deployment of renewable projects. FMO’s role as investor in the second closing for the Fund will contribute to the Fund reaching its target size and deployment timeline.
What is the Environmental and Social categorization rationale
Afrigreen has been classified as Cat A, expected to be downgraded to Cat B+ in the near future when the use of B+ categorization is official for Funds. Risk exposure of Afrigreen is medium to high, mainly given contextual risks. The Fund will not invest in any category A project, in coal-related activities, or higher risk business activities that may include a) involuntary resettlement; b) risk of adverse impacts on indigenous peoples; c) significant risks to or impacts on the environment, community health and safety, biodiversity, cultural heritage; or d) significant occupational health and safety risks. Afrigreen will mostly focus on rooftop C&I, small scale ground-mounted solar, storage and potentially biomass. In principle all IFC PSs could potentially be triggered, with the caveats highlighted above.
