Project detail - BIX II O-FGR

Who is our prospective customer?

BIX 2 is an open FGR debt fund, managed by Fount and advised by Cardano Development. The fund concerns the successor fund to BIX Capital B.V., an existing FMO investment active since 2016. BIX 2 will provide debt finance to SMEs whose products and services address gender, health and climate needs of underserved populations. It does so primarily through the pre-financing of impact receivables – primarily carbon credits and SDG-based credits.

What is our funding objective?

FMO will invest USD10mln from the Access to Energy Fund and USD5mln from DFCD into the Fund’s senior and mezzanine debt layers. FMO will participate in the Fund’s first close, with subsequent closing(s) expected at a later stage.

Why do we want to fund this investment?

BIX Capital is a front-runner in the (pre-)financing of carbon and (more recently) other impact-based proceeds. Lack of energy and financial access to the Bottom of the Pyramid (BoP) and businesses continues to hold back social and economic development in (particularly) SSA. The Fund is highly aligned with FMO’s strategy to support initiatives relating to distributed energy. The investment is expected to have a positive economic, social and environmental impact. FMO’s Green and Reducing Inequality labels apply (100%), given the Fund’s inclusive and green activities. FMO’s participation in the Fund’s 1st close is expected to aid further fundraising, and drive further scale and impact.

What is the Environmental and Social categorization rationale?

This transaction is labelled as E&S risk category B, similar to the classification of other off-grid and renewable energy debt funds in FMO’s portfolio. The fund focuses primarily on companies providing Access to Energy (largely clean cooking) to the Bottom of the Pyramid. While these generally have a low risk profile, activities do come with potential limited adverse risks associated with waste management and labour conditions. The following Performance Standards are triggered by the transaction: PS 1 Assessment and Management of Environmental and Social Risks and Impacts, PS 2 Labor and Working Condition, PS 3 Resource Efficiency and Pollution Prevention, PS 4 Community Health, Safety and Security. PS 5 is not triggered as there is no land acquisition (corporate facility). PS 6 is not triggered as no Biodiversity Conservation and Sustainable Management of Living Natural Resources were identified. PS 7 is not triggered because no impacts on local groups qualifying as Indigenous were identified. PS 8 is not triggered as no cultural objects or places were identified.

More investments

Date	Total FMO financing
11/30/2023	USD 5.00 MLN