ENERGY ACCESS RELIEF FUND B.V.
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
The Energy Access relief Fund (‘EARF”) will be a newly created debt fund to provide Covid19 relief funding to Access to Energy Companies (offgrid SHS, clean cooking and Minigrid companies). This fund will be established and managed by Social Investment Managers & Advisors, LLC (SIMA). EARF aims to become a US$100M fund with FMO participating in the first close of ~US$35-40M, together with multiple stakeholders.
What is our funding objective?
The EARF aims to address two main barriers: (1) offer liquidity to preserve and support the access to affordable, reliable, sustainable and modern energy for all and (2) help stabilize the energy access sector by providing security for local clean energy jobs.
Why do we fund this investment?
Lack of energy and financial access to the Bottom of the Pyramid (BoP) and businesses continues to hold back social and economic development in (particularly) SSA. Today, the impact of Covid19 in LDC countries could jeopardise the progress made so far towards achieving Sustainable Development Goal 7 of Affordable and Clean Energy. This fund aims at protecting this progress by contributing to a positive economic, social and environmental impact, while providing the much needed relief capital today.
What is the Environmental and Social categorization rationale?
This transaction is labelled as E&S risk category B. The fund focuses primarily on companies providing Access to Energy (offgrid SHS and minigrids) to the Bottom of the Pyramid. The fund has a well-defined E&S policy, that aligns to IFC PS and will not undertake projects classified as E&S category A.
- Region
- Africa
- Country
- Africa
- Sector
- Infrastructure, Manufacturing and Services
- Publication date
- 11/6/2020
- Effective date
- 8/3/2021
- Total FMO financing
- USD 5.00 MLN
- Funding
- AEF-I
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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