E3 Low Carbon Economy Fund I
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
E3 Low Carbon Economy Fund I (“E3” or “the Fund”) is an investment fund that aims to invest in low carbon decentralized and smart services in Africa. The Fund is formally managed by Lion's Head Global Partners and advised by E3 Capital. FMO has participated in the Fund's first close alongside KFW, Swedfund and Proparco. The Fund is a successor to Energy Access Ventures Fund, to which FMO is a limited partner.
What is our funding objective?
E3 focusses on investing in early-stage companies with high growth potential and an innovative character. Their target companies should have the potential to generate significant economic returns, as well as improve access to basic needs (like energy) or the environmental sustainability of African economies.
Why do we fund this investment?
The Fund's mission aligns well with FMO's strategy to (i) reduce inequalities by providing access to basic goods and services to underserved populations, (ii) take climate action to reduce adverse environmental impact, and (ii) support tech (enabled) propositions designed for emerging markets that can significantly improve value chains and create new opportunities.
What is the Environmental and Social categorization rationale?
The Fund is assigned to "Category A" since approximately 30% of the portfolio will target infrastructure-type prospects (mini- and metro-grids; distributed energy systems). The mentioned deals may fall into E&S Category B+ due to the potential trigger of IFC PS 5-8 to a limited extent, combined with the challenging country contexts in Sub-Saharan Africa. The remaining 70% of the portfolio is intended for sectors with lower E&S risks: internet connectivity, electric mobility, agricultural appliances and productive use, energy efficiency enablers. Several investments will be located in fragile- and conflict affected situations where an increased sensitivity is required to identify and mitigate risks related to human rights abuses, weak land governance, risks of child labor and modern slavery, gender-based violence, security incidents and armed conflicts. Climate change vulnerability and inequalities further elevate contextual risks.
- Website customer/investment
- https://e3-cap.com/
- Region
- Africa
- Country
- Kenya
- Sector
- Energy
- Publication date
- 6/14/2023
- Effective date
- 5/12/2023
- Total FMO financing
- USD 10.00 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) - A