Acon Sunrise Investors I, L.P.
Status: Approved investmentWhy 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 customer
FMO’s investment in ACON Sunrise Investors I, L.P. is used for further investment in Rymel Ingeniería Eléctrica S.A.S (Rymel). Founded in 1977, Rymel has grown to become Colombia's second-largest power transformer manufacturer, with strong exports to Central America and the Caribbean and growing sales into the United States. Rymel offers products, both in electricity transformation and its measurement, leading the region in the market for conventional distribution transformers.
What is our funding objective?
FMO's investment will be used to acquire a stake in Rymel and to support its growth plans in order to contribute to the stability, growth and innovation of the electricity market in the region.
Why do we fund this investment?
The project has a high developmental impact, as power transformers are essential for delivering electricity to households and companies, therewith contributing to access to an essential good. The investment qualifies for an FMO Green Label.
What is the Environmental and Social categorization rationale?
Rymel is categorized as a B+ investment. The transformer manufacturing industry has several E&S risks relating to significant operational health & safety risk due to electrical safety and other high-risk manufacturing processes and the handling, storage, and disposal of hazardous materials used as insulating materials in the transformers amongst others. The use of chemicals and hazardous materials also has the potential for environmental degradation if managed improperly (including historic contamination of previous sites, considering the past use of PCBs in the industry). Overall, the main IFC Performance Standards triggered are 1-4, 5-8 are not expected to be applicable to this investment. Through our trusted fund manager, FMO is expecting to be able to put a clear focus on improving ESG considerations at the company, based on the already established systems and organizational capacity.
- Website customer/investment
- https://www.rymel.com.co/es
- Region
- Latin America & The Caribbean
- Country
- Colombia
- Sector
- Infrastructure, Manufacturing and Services
- Publication date
- 8/16/2024
- Effective date
- 6/28/2024
- Total FMO financing
- USD 12.40 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+