Buen Manejo del Campo S.A. de CV
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
Sistema.bio manufactures, sells, installs, finances and services a range of modular biogas digesters and accessories designed for smallholder farmers. Since its inception in 2010 the company has installed over 20,000 units from hubs in Latin America, Kenya and India. Designed to serve farms from 2 to 200 cows, the product range varies in size from a single 6m³ biodigester, to a number of interconnected 40m³ units. With the biogas produced, an average household of five can meet the majority of is cooking needs with the smallest unit. Besides cooking, larger systems can also be used for water or space heating and running mechanical/electrical appliances such as a chaff cutter, water pump or milking machine.
What is our funding objective?
After an initial loan facility of USD 1mln in 2019, FMO will provide another USD 1mln alongside the existing investors: EDFI ElectriFi, Engie RDE and Co Capital, as well as new investors: Chroma and Blink CV. This financing will enable the company to continue its scale up and international expansion principally in Kenya. This financing might be converted into equity in the next capital increase within the next 12-24 months.
Why do we fund this investment?
Sistema.bio provides smallholder farmers in rural areas access to a renewable source of energy (biogas) which can be used to replace fossil fuel and wood-fired cooking, and biofertilizer (bioslurry) which can be used to increase crop yields and replace chemical alternatives. In addition, the replacement of wood, fossil fuels and chemical fertilizers together with the efficient management of animal waste mitigate GHG emissions and have significant health benefits. Moreover, use of biogas reduces the time and labour burden of fuelwood collection. Combined, these contribute to an increase in household productivity and cost savings, leading to socioeconomic empowerment and ultimately spurring economic growth. By providing a loan to Sistema.bio, FMO helps to close a financing gap and supports the company to expand into new markets and increase their social and environmental impact.
What is the Environmental and Social categorization rationale?
The Project is rated category B. Activities come with minimal environmental and social risks and potential negative impacts. Key environmental and social policies and procedures were developed. For this investment the IFC Performance Standards (PS) 1, 2, 3 and 4 are applicable due to the manufacturing of equipment, transport and use. The remaining PSs do not apply as no new land is needed (PS 5), there are no material negative impacts on biodiversity (PS 6), the due diligence did not indicate any specific impacts on Indigenous People and/or vulnerable groups (PS 7) and the diligence did not reveal any impacts on cultural heritage including cultural objects or places of spiritual importance (PS 8).
More investments
| Date | Total FMO financing |
|---|---|
| 11/17/2023 | USD 4.00 MLN |
| 11/17/2023 | USD 3.00 MLN |
| 12/18/2019 | USD 1.00 MLN |
- Website customer/investment
- http://sistema.bio/
- Region
- Africa
- Country
- Kenya
- Sector
- Energy
- Effective date
- 12/18/2020
- Total FMO financing
- USD 1.35 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