BE C&I SOLUTIONS HOLDING PTE. LTD.
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
Berkeley Energy Commercial & Industrial Company is a distributed energy business that develops, builds and operates solar PV rooftop and ground mount installations for commercial and industrial (“C&I”) customers in emerging markets under power purchase agreements. The business is currently active in India and Thailand through its existing shareholder and aims to become a leading energy solutions business in the recently budding C&I clean energy market in India and SE Asia and potentially other emerging markets.
What is our funding objective?
FMO proposes to provide up to US$50 million for a significant minority stake in the company. The funds will be used to partially acquire the seed assets and further grow the company’s portfolio of C&I assets. REAF II will be the other shareholder of the company.
Why do we fund this investment?
The investment will create distributed clean energy infrastructure for high quality corporate customers as well as local employment. It will allow these customers to fulfil their CSR targets targeting renewable energy supply and save on energy costs while also allowing the targeted countries to get closer to reaching their renewable energy targets – and supporting the energy paradigm shift from centralised to decentralised energy generation and utilisation. With this transaction, FMO further expands its cooperation with longstanding partner Berkeley Energy, the fund manager of REAF II and other emerging markets renewable energy funds that FMO has also invested in.
What is the Environmental and Social categorization rationale?
E&S risk category B, due to limited risks and possibility for effective mitigation. The impact potential is material, with the delivery of grid independent and renewable energy to commercial and industrial customers in regions that need stable and clean energy for sustainable economic development. Key risks are related to occupational health and safety, social accountability with regard to staff and (sub)contractor management (e.g. working conditions, remuneration, recruitment and onboarding etc.), contextual risks and security. The company’s existing and functional ESMS and E&S experiences will be tailored-made and applied (incl. HSE academy), with support of FMO, and a dedicated ESG manager will be recruited for the business in due time. Note that PS1-4 are triggered to some extent; PS5-8 are not triggered (C&I on existing property). Further additionality opportunities related to the implementation of a sustainability policy (incl. supply chain).
More investments
| Date | Total FMO financing |
|---|---|
| 5/30/2023 | EUR 0.02 MLN |
| 4/5/2023 | USD 28.20 MLN |
- Region
- Asia
- Country
- India
- Sector
- Energy
- Publication date
- 4/10/2019
- Effective date
- 5/23/2019
- Total FMO financing
- USD 50.00 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