KODENI SOLAR S.A.S.U.
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
FMO is investing into Kodeni Solar SASU (“Kodeni”), an SPV established under the laws of Burkina Faso with a total syndicated debt of EUR 32.4 million. The Sponsor is Africa REN Invest Ltd. (Mauritius), an IPP that is active in West Africa’s renewable energy market. Africa REN who also own and operate the Senergy 2 solar PV plant in Senegal, which was also financed by an FMO loan.
What is our funding objective?
FMO’s loan of EUR 11.97 million will catalyse EUR 12.3 million from ICCF both for a 14.5 year tenor and mobilise a further EUR 8.1 million from AEF which will have a longer 20-year tenor. This financing will allow for the development, construction, operation and maintenance of a 38MWp solar farm with a total project cost of EUR 40.5 million.
Why do we fund this investment?
This is a greenfield renewable energy development in a low-income sub-Saharan country and the first privately owned solar power project in the country. Kodeni will provide clean, reliable electricity to a country that has one of the lowest electrification rates in West Africa at a lower price than current thermal power stations. FMO’s tenor of up to 14 years and 6 months is not available in the Burkina Faso market and allows the project to offer an attractive tariff to SONABEL.
What is the Environmental and Social categorization rationale?
Category B+, all IFC PSs triggered except PS7, as there are no Indigenous Peoples groups affected by the project. Key E&S focus areas include provision of replacement land to land sellers, via a government-led process. The project company will follow and support the process in line with IFC PS requirements on Private Sector Responsibilities in Government Led Land Acquisition. While local communities and authorities are supportive of the project, proactive management of the project-community relationship and avoiding project-induced intra-community tensions are key areas where the company will continue to focus their efforts, given the deteriorating security context in Burkina Faso, where minor issues can escalate fast. A project-specific environmental and social management system with plans and procedures addressing all relevant areas, including the above, will be implemented by the project company and cascaded down to contractors and subcontractors.
More investments
| Date | Total FMO financing |
|---|---|
| 12/22/2020 | EUR 11.97 MLN |
- Region
- Africa
- Country
- Burkina Faso
- Sector
- Energy
- Publication date
- 4/28/2020
- Effective date
- 12/22/2020
- Total FMO financing
- EUR 8.10 MLN
- Funding
- AEF-I
-
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+