Project detail - Camco REPP 2 Feeder SCSp

Who is our prospective customer?

Camco REPP 2 SCSp (“REPP2” or “Fund”) is a newly created fund providing debt and hybrid instruments to renewable energy projects and companies in Sub-Saharan Africa, focusing on least developed countries (LDCs). The Fund is managed by Camco Management Limited as fund advisor supported by Innpact Fund Management S.A, as the third-party alternative investment fund manager. REPP2 fund is a successor of the Camco-managed REPP phase 1 fund.

What is our funding objective?

FMO will invest up to USD 50 mln into the Fund’s debt layer, of which up to USD 30 mln will be committed to the Fund’s first close. First-close fund size will be around USD 100 mln and final target fund size is USD 250 mln. FMO’s funding will be invested into different projects and companies in the renewable energy sector, including smaller Independent Power Producers, mini-grids, isolated grids and energy access companies. REPP2’s investment objectives are (i) to invest and support the small to medium scale distributed renewable energy sector in Sub-Saharan Africa (as defined by the UN) with a particular focus on LDCs, thereby achieving a sustainable return on investments for investors, and (ii) to mitigate GHG emissions and build the climate resilience of the energy system.

Why do we want to fund this investment?

Debt financing for small to medium scale energy companies and projects in Africa is considered scarce, particularly in LDCs. The Fund is highly aligned with FMO’s strategy to reduce inequalities between countries and to support initiatives related to energy access. FMO’s Green and Reducing Inequalities labels are expected to apply 100% given the investment focus of REPP2 on renewable energy projects in LDCs.

What is the Environmental and Social categorization rationale?

This concerns an Environmental and Social (E&S) risk category B+ investment. While most of the investments in the currently presented pipeline are assessed as low to medium risk and the Fund is excluding category A investments, some investments will be made in Fragile States with higher contextual risks. All investments will trigger IFC Performance Standard (PS) 1 to 4 (Environmental and Social Management System, Labor, Pollution, Community Health and Safety), while some investments could also trigger PS 5 to 8 given potential limited impact on land use, biodiversity, Indigenous Peoples (not expected) and/or cultural heritage. Camco has demonstrated a strong commitment to implementing high ESG standards in their investments. The investment manager has implemented an Environmental and Social Management System (ESMS) that includes E&S risks and performance screening of investment opportunities and monitoring E&S performance once the investment is made. Camco has a professional, experienced team in place, which will be complemented with a full-time dedicated E&S analyst position. For B and B+ construction finance investments E&S consultants are engaged in the due diligence. Note that all investments will be managed in accordance with the IFC PS, with any gaps being covered by an Environmental & Social Action Plan (ESAP) to be implemented.

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Date	Total FMO financing
11/18/2024	USD 10.00 MLN
11/18/2024	USD 20.00 MLN