SHAMOL ZARAFSHAN ENERGY FE LLC
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
SHAMOL ZARAFSHAN ENERGY FOREIGN ENTERPRISE LIMITED LIABILITY COMPANY (the "Company") is a renewable energy company who will build, own and operate an up to 500 MW wind-power project in Uzbekistan. The company is owned by Masdar which is a 100% subsidiary of Mamoura Diversified Global Holding PJSC (credit rating: AA (S&P) / Aa2 (Moody’s) / AA (Fitch)) and through Mubadala Investment Corporation, 100% owned by the Government of Abu Dhabi. Established in 2006, Masdar is a global leader in renewable energy and sustainable urban development, active in over 25 countries(with credit ratings: Fitch (A+) and Moody’s (A2)).
What is our funding objective?
FMO participates in this transaction with 3 B-Loan Participations (of USD10m each) with ADB, EBRD, and IFC. These Loans with 20-year tenor will be used to fund the investments needed for this wind powered project. Such long-term funding is not available from local banks.
Why do we fund this investment?
The funding contributes to the Company's construction and expansion of their renewable energy assets in the country, accelerating the sustainable energy transition in Uzbekistan.
What is the Environmental and Social categorization rationale?
FMO's E&S category for this transaction is A, reflecting impacts on biodiversity, maintaining labour standards and workers health and safety as well as economic displacement (albeit limited). IFC PS1-6 are triggered. IFC PS7 is not triggered as the project does not impact communities of indigenous people, as confirmed during DD. IFC PS8 is also not triggered as no cultural heritage impacts were identified, as confirmed during DD. Explicit reference is made to IFC’s and EBRD’s ex ante Disclosure and Project Summary Documents: this can be found on IFC’s and EBRD’s websites (i.e.: https://disclosures.ifc.org/project-detail/ESRS/44364/zarafshon-wind and https://www.ebrd.com/work-with-us/projects/psd/52362.html).
More investments
| Date | Total FMO financing |
|---|---|
| 9/9/2022 | USD 10.00 MLN |
| 9/8/2022 | USD 10.00 MLN |
- Region
- Europe & Central Asia
- Country
- Uzbekistan
- Sector
- Energy
- Publication date
- 4/25/2022
- Effective date
- 9/7/2022
- Total FMO financing
- USD 10.00 MLN
- Funding
- FMO NV
-
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) - A