responsAbility Energy Access Fund S.A.
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
The recently launched US$ 34 million responsAbility Energy Access Fund (the Fund) was established by responsAbility Investments AG in collaboration with founding partner Shell Foundation and anchor investor IFC, a member of the World Bank Group. The fund intends to scale up once it builds a track record in the early years of operations. FMO takes a 7.8 mln share participation.
What is our funding objective?
The Fund is dedicated to providing debt financing to fast-growing companies which promote access to decentralized modern energy solutions, primarily in Africa and Asia. The market for off-grid energy and lighting is expected to grow into a US$ 50 billion market per annum in the long term. Innovations in business models, coupled with declines in the cost of components like solar panels, are opening new opportunities for companies to offer affordable, high-quality products that can serve the needs of over 2 billion people worldwide who lack access to reliable and affordable energy. These new affordable and modern energy solutions provide a range of socio economic, health and environmental impacts to households, businesses and community services such as schools and clinics.
Why do we fund this investment?
Because lack of working capital is a key barrier to a faster growth of the sector. Companies find it difficult to obtain debt financing from local lenders. There are large sums of capital required to scale the market and the Fund will address this financing gap by providing loans to commercially viable business models in the energy access value chain. The FMO commitment to the Fund is anticipated to serve as an encouragement for more private investors to get involved in fuelling the growth of the market.
More investments
| Date | Total FMO financing |
|---|---|
| 6/28/2019 | USD 14.70 MLN |
| 8/24/2015 | USD 7.80 MLN |
- Website customer/investment
- http://www.responsability.com
- Country
- Global
- Sector
- Energy
- Effective date
- 8/24/2015
- End date
- 12/29/2020
- Total FMO financing
- USD 7.80 MLN
- Funding
- Building Prospects
-
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