SOLARX LTD
Status: Approved investmentWhy disclosure?
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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
SolarX is a Commercial and Industrial (“C&I”) solar rooftop business active in Mali, Burkina Faso and Senegal. SolarX offer affordable, clean and reliable power assets with attractive economics to its customers that rely on high cost gensets and/or an unreliable (and expensive) grid. SolarX specializes in the development, construction and operation of grid-connected, stand alone and hybrid solar PV installations in Mali, Burkina Faso and Senegal.
What is our funding objective?
FMO proposes to invest up to EUR 5m (consisting of EUR 2.5m, with an option for a EUR 500k top-up) through a convertible note and EUR 2.5m mezzanine. FMO investee Energy Access Ventures Fund (“EAVF” or the “Fund”), has invested EUR 4.5m in the Company’s previous round through EUR 1.5m in equity and EUR 3m in Mezzanine.
Why do we fund this investment?
SolarX provides clean, affordable power in Mali, Burkina Faso and Senegal which are among the least developed countries and highly vulnerable to climate change. This investment contributes to access to electricity, reducing the cost of electricity, displacing polluting diesel-powered electricity generation and thereby reducing CO2 emissions and creating local employment.
What is the Environmental and Social categorization rationale?
E&S Category B+ due to risks related to solar PV construction, operation, and maintenance activities, battery storage systems and higher-risk off-takers (mining; heavy industry) in West Africa. Key E&S risks include decent work conditions, waste management, land-related social and environmental issues, contextual human rights risks in fragile states as well as the human rights issues in the global solar supply chain. The transaction will be managed in accordance with IFC Performance Standards 1, 2, 3, 4, 5 and 6. Performance Standard 7 and 8 are not triggered since there are no anticipated impacts on indigenous peoples and cultural heritage. The Company has an E&S Management System and dedicated E&S team that will be strengthened as part of FMO’s investment.
More investments
| Date | Total FMO financing |
|---|---|
| 7/21/2023 | EUR 0.04 MLN |
| 9/2/2022 | EUR 2.50 MLN |
- Region
- Africa
- Country
- Mali
- Sector
- Energy
- Publication date
- 6/21/2022
- Effective date
- 9/2/2022
- Total FMO financing
- EUR 3.00 MLN
- Funding
- Venture Capital 002
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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+