SOUTH ASIA GROWTH FUND II, L.P.
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
South Asia Growth Fund II, L.P.(“SAGF II”), a limited partnership registered in Canada is a USD 150m (target) private equity fund. The Fund’s objective is to generate long term capital appreciation through equity and equity-linked investments in companies that seek growth and expansion opportunities along the resource efficiency supply chain primarily in India, with potential investments in Bangladesh.
What is our funding objective?
FMO will be committing USD 15m to the Fund to make investments in the resource and energy efficiency sectors in India and Bangladesh with a commercial return.
Why do we fund this investment?
SAGF II is the only fund in India with a 100% resource and energy efficiency mandate. FMO has committed to the Fund to increase our exposure to green investments in India and contribute to the Sustainable Development Goals 7 (Affordable and Clean Energy) and 8 (Decent Work and Economic Growth).
What is the Environmental and Social categorization rationale?
SAGF II is considered medium-risk (B) and ESG is an integral part of the investment process of the fund. The investment team (with support and guidance from the ESG Team) is responsible for identifying and addressing ESG concerns and opportunities in each investment. The fund has a dedicated ESG team with a Head ESG, and will be responsible for facilitating and addressing such concerns/ issues and opportunities for every investment. They team works closely with the fund’s ESG team/manager to identify a suitable technical consultant and design the scope of work. In conjunction with the ESG manager team, they will work with the company management to design action plans, which are incorporated in the legal documentation. The fund team will also work closely with the investee company to implement the necessary action plan and to support the company on any other ESG matters including capacity building, as needed. The FM has a strong ESG track record and is committed to being the best-in-class in their investments.
- Region
- Asia
- Country
- India
- Sector
- Energy
- Publication date
- 9/13/2018
- Effective date
- 5/10/2019
- Total FMO financing
- USD 15.00 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