Indefol Solar JSC
Status: Investment in contracting phaseWhy 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 prospective customer?
Indefol Solar 2022 is a Holding company that aims to develop, construct and operate a portfolio of ~179MWp solar PV projects with Commercial and Industrial clients as offtakers in Vietnam.
What is our funding objective?
FMO will provide direct equity to a Vietnamese holding company under which the portfolio will be developed and constructed. This transaction will be fully Green as it involves solar energy generation. Power that will be produced on the roofs of companies will enable the respective companies to decrease their energy bill and increase their green energy footprint.
Why do we want to fund this investment?
By providing equity, FMO is providing a financial product that is scarce in the market. FMO hopes to (further) attract the (rooftop) solar sector in Vietnam to investors.
What is the Environmental and Social categorization rationale?
E&S categorization for Indefol is B+. Indefol is involved in developing rooftop solar on large manufacturing plants (predominantly in the textile sector) in Vietnam, with the occasional ground-mounted solar within a client’s facility premises. The nature of these developments has inherent risks relating to the following IFC Performance Standards (PS): PS 1 (Assessment and Management of Environmental and Social Risks and Impacts), PS 2 (Labor and Working Conditions), PS 3 (Resource Efficiency and Pollution Prevention), and PS 4 (Community Health, Safety and Security). Contextual risks in the manufacturing sector (especially textile) are high in relation to human rights abuses, hence supply chain management risk of offtakers is present in this case. Future developments might consider ground-mounted systems outside of client premises, opening up E&S risk to PS 5 (Land Acquisition and Involuntary Resettlement) and PS 6 (Biodiversity Conservation and Sustainable Management of Living Natural Resources) related aspects, although this development is still uncertain. FMO E&S support will target all IFC PS nonetheless.
- Website customer/investment
- https://www.indefol.com/
- Region
- Asia
- Country
- Viet Nam
- Sector
- Energy
- Publication date
- 3/7/2023
- Deadline for feedback
- 5/6/2023
- Total FMO financing
- USD 13.10 MLN
- Funding
- FMO NV
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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+