SIMA Commercial & Industrial Solar Green Bond B.V
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
SIMA Commercial & Industrial Solar Green Bond B.V. (“SIMA C&I”) is a newly created fund (USD 150 million target size) that will be providing funding to the SME C&I solar company and developer sector in Sub-Saharan Africa. The fund is managed by SIMA LLC.
What is our funding objective?
FMO will provide funding ('the Fund') to SIMA C&I to be used for debt funding to SME energy services and construction companies in Sub-Saharan Africa’s commercial and Industrial (“C&I”) PV sector. It will offer a combination of short (developer) and long-term (project/asset) financing. The Fund’s ultimate goal is to promote the reduction of GHG emissions as well as to support the growth of SME energy companies.
Why do we fund this investment?
Providing energy access to the C&I sector is a key part in the promotion of sustainable operations through using renewable energy. Debt financing for small to medium scale energy companies and projects in Africa is considered particularly scarce. The Fund intends to have substantial impact by targeting an underserved market and would provide a mix of structured debt solutions to help support swift deployment of renewable projects. FMO’s role as investor in the first closing for the Fund will contribute to catalyzing investors and the Fund reaching its target size and deployment timeline.
What is the Environmental and Social categorization rationale?
The Fund has been classified as Category B. Risk exposure of SIMA is low to medium, mainly given contextual risks. The Fund will not invest in any higher unmitigable risk business activities that may include a) involuntary resettlement; b) risk of adverse impacts on indigenous peoples; c) significant risks to or impacts on the environment, community health and safety, biodiversity, cultural heritage; or d) significant occupational health and safety risks. The Fund will mostly focus on rooftop C&I and small scale ground-mounted solar. Note that all investments will be managed in accordance with the IFC Performance Standards, and an Environmental & Social Action Plan will be part of the agreement.
More investments
| Date | Total FMO financing |
|---|---|
| 12/29/2023 | USD 10.00 MLN |
- Website customer/investment
- https://simafunds.com/
- Region
- Africa
- Country
- Africa
- Sector
- Energy
- Publication date
- 9/22/2023
- Effective date
- 12/29/2023
- Total FMO financing
- USD 10.00 MLN
- Funding
- Building Prospects
-
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