CLEAN ENERGY LLC
Status: Completed 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
Clean Energy LLC is a renewable energy company focused on operating Mongolia's first private sector wind farm. Newcom LLC, one of the largest holding companies in Mongolia, is the main sponsor behind the project and holds a variety of investments across various sectors in the country.
What is our funding objective?
Subordinated loan from FMO of up to USD 2.3 million (out of total subordinated loan of USD 5.5 million) to finance the share buy back from the minority shareholders (FMO, General Electric and EBRD). EBRD will join as a parallel Lender.
Why do we fund this investment?
Basically, this is an equity conversion into a subordinated loan, whereby FMO also funds the exit of General Electric in the interest of the Project. In general, FMO supports renewable energy projects in Mongolia, since energy generation in the country is almost entirely based on coal, which leads to high carbon intensity.
What is the Environmental and Social categorization rationale?
This transaction involves the conversion of some equity to debt with an existing FMO client and as such involves no changes and no change to E&S risks on the ground. The underlying project itself is an operational windfarm that FMO categorized as B+ (moderate risk) in 2012 and therefore continues to monitor its E&S performance accordingly. Key project E&S risks include: Occupational Health and Safety, potential impacts on some bird species. These risks are managed through the implementation of an E&S management system based on continual improvement principles, along with periodic internal and external E&S monitoring. The project is managed in accordance with IFC PS 1,2,3,4,5,6 and 8. IFC PS7 is not triggered as the pre-project due diligence confirmed that there were no communities of Indigenous Peoples living or otherwise active near the project.
More investments
| Date | Total FMO financing |
|---|---|
| 12/29/2020 | USD 5.11 MLN |
| 3/21/2012 | USD 21.60 MLN |
- Region
- Asia
- Country
- Mongolia
- Sector
- Energy
- Publication date
- 5/4/2018
- Effective date
- 11/14/2018
- End date
- 10/5/2021
- Total FMO financing
- USD 2.65 MLN
- Funding
- FMO NV
-
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+