Afrigreen Debt Impact Fund SLP
Status: Approved investmentWhy disclosure?
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Disclaimer
The information as disclosed is indicative and provided on an "as-is/as available" basis for general informational purposes only and should not be construed as financial, legal or investment advice, nor as a commitment or an offer to arrange or provide any financing. The final decision to provide financing is subject to the terms and conditions of FMO in its sole and absolute discretion. When providing links to other sites, FMO bears no responsibility for the accuracy, legality or content of the external site or for that of subsequent links. The information on proposed investment for high-risk investments is made available in the language relevant to the country or region where the bulk of operations take place. Translations of any information into languages other than English are intended as a convenience for local stakeholders. In case of any discrepancy, the information provided in English will prevail.
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.
More investments
| Date | Total FMO financing |
|---|---|
| 11/15/2024 | EUR 10.00 MLN |
- 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 MLN
- Funding
- Building Prospects
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Risk categorization on environmental and social impacts, A = high risk, B+ = medium high risk, B = medium risk, C = low risk
Environmental & Social Category
(A, B+, B or C) - A
- Translation
- https://www.fmo.nl/afrigreen-debt-impact-fund-slp