LEREKO METIER SUSTAINABLE
Status: Approved 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
Lereko Metier raised R690 million for the final closing of its pioneering Lereko Metier Sustainable Capital fund (LMSC) to make investments in the renewable energy, energy efficiency, water and waste management sectors. The fund exceeded initial targets and obtained support from benchmark local and international institutions, with FMO as an anchor investor.
What is our funding objective?
LMSC targets investments which deliver social and environmental benefits as well as returns on financial capital. The fund combines the dual benefit of leveraging an established private equity house as well as a focused team with a leading renewables, development and clean/green track record in the region. The investment mandate is balanced between renewable energy projects and growth capital investments in other resource efficiency sectors, with a unique blend of team skills, experience and networks allowing for a compelling proposition to entrepreneur teams and an exciting new category for investors. The fund has invested in the 50MW Bokpoort concentrated solar power (CSP) plant in the Northern Cape. This is the largest project in the second round of FMO Energy's Renewable Energy Independent Power Procurement Programme (REIPPP). In a second completed investment LMSC joined as an equity partner with solar photovoltaic developer AE-AMD, which successfully closed two projects under the first round of the REIPPP. The fund has also successfully partnered in three selected wind projects in the third round of the REIPPP.
Why do we fund this investment?
FMO played an anchor investor role in LMSC. Final closing of the fund means that more risk capital is available for renewable energy and clean technologies in Southern Africa, which is fully in line with FMO's investment strategy
- Website customer/investment
- http://www.metier.co.za
- Region
- Africa
- Country
- South Africa
- Sector
- Infrastructure, Manufacturing and Services
- Effective date
- 1/1/2000
- Total FMO financing
- ZAR 110.00 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) - A
- UN Sustainable Development Goals