Afrigreen Debt Impact Fund SLP
Status: Proposed investmentWhy disclosure?
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In case of questions
We welcome feedback on this proposed investment opportunity for FMO. The ending of the proposed investment phase is indicated on the right side of this page. 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 prospective 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 Greenhouse Gas (GHG) reduction investments, mainly focusing on companies (developers) offering energy solutions for the Commercial & Industrial (C&I) sector. Financing will target projects in Africa, specifically Central and Western Africa.
Why do we want to fund this investment?
Afrigreen answers 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 electricity demand. Debt financing for small- to medium-scale (decentralized) energy projects in Africa is considered particularly scarce. The Fund intends to have a substantial impact by targeting an underserved market and would provide a mix of structured debt solutions targeting different technologies to help support the swift deployment of renewable projects. As an investor, FMO 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 E&S category B+. The 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 primarily focus on rooftop C&I, small-scale ground-mounted solar, storage, and potentially biomass. In principle, the abovementioned caveats could trigger all IFC Performance Standards.
More investments
| Date | Total FMO financing |
|---|---|
| 4/4/2024 | EUR 10.00 MLN |
- Website customer/investment
- https://www.rgreeninvest.com/
- Region
- Africa
- Country
- Africa
- Sector
- Energy
- Publication date
- 11/15/2024
- Deadline for feedback
- 1/14/2025
- Total FMO financing
- EUR 10.00 MLN
- Funding
- FMO NV
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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+
- Translation
- https://www.fmo.nl/afrigreen-debt-impact-fund-slp