Komaza Forestry Ltd
Status: Approved investmentWhy disclosure?
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In case of questions
In case of questions, please contact us at disclosure@fmo.nl
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
Our customer is Komaza Forestry Limited (“KFL”), which is a company in Kenya that is 100% owned by Komaza Group Inc (“Komaza”). Back in 2020, FMO invested USD 7.5m in Komaza, which is a vertically integrated micro-forestry company working with smallholder farmers in Coastal and Central Kenya to address a large and fast-growing wood market in Africa. The funding objective at that time was to support the growth of Komaza within Kenya and potentially across Sub-Saharan Africa.
What is our funding objective?
KFL is currently under administration as the company is in a bankruptcy scenario. Together with some shareholders of Komaza, FMO has structured a short-term bridge funding for KFL of USD 1.5m (USD 500k for FMO) to facilitate an orderly wind-down.
Why do we fund this investment?
FMO facilitates the orderly wind-down of the company by providing the Administrator with bridge funding to liquidate the company. This bridge funding will have priority in repayment from the sale of the assets.
What is the Environmental and Social categorization rationale?
Investments in Komaza were categorized as category B+. This particular transaction however has an E&S risk of category C. The investment has no significant negative environmental and social impacts; the funding will be used to facilitate an orderly wind-down and no forestry-related activities will be implemented in this phase of KFL.
More investments
| Date | Total FMO financing |
|---|---|
| 11/27/2023 | USD 0.25 MLN |
- Region
- Africa
- Country
- Kenya
- Sector
- Agribusiness, Food & Water
- Publication date
- 2/8/2024
- Effective date
- 11/27/2023
- Total FMO financing
- USD 0.25 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) - B+