SOLESCO CENTROAMÉRICA S.A.
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
Kingo, trade name for Solesco Centroamérica S.A. is the first commercial venture in Central America for rolling out off-grid prepaid energy solutions for households. Kingo positions itself as a utility-like provider of electricity to rural off-grid communities. The company’s business model consists in installing home solar systems which remain the company’s property and distributing prepaid energy credit through local distributors (shop keepers) that customers can purchase according to their budget and their energy needs.
What is our funding objective?
The objective of the USD eq. 10.5 million in GTQ is to allow Kingo to continue its expansion in the market and be able to show significant growth on solid/validated business model. The proceeds of funds are mainly used to fund the acquisition of new devices and installation/maintenance activities.
Why do we fund this investment?
Kingo provides first time energy access to households via solar home systems in rural areas without a grid connection. Moreover, the energy access contributes to productivity of households and ultimately to economic growth (proper lighting and charging facilities allow work and study activity beyond sunset).
What is the Environmental and Social categorization rationale?
Kingo is a category B project with regards to E&S given the energy service provided and the Solar Home Systems (SHS) installed in the customer’s household. The E&S impacts are considered minimal in this transaction.
More investments
| Date | Total FMO financing |
|---|---|
| 8/22/2018 | USD 5.00 MLN |
- Region
- Latin America & The Caribbean
- Country
- Guatemala
- Sector
- Energy
- Publication date
- 5/24/2018
- Effective date
- 8/22/2018
- Total FMO financing
- USD 6.50 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