E.V. Assets Management Uganda Limited
Status: Proposed investmentWhy disclosure?
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In case of questions
We welcome feedback on this proposed investment opportunity for FMO. The ending of the proposed investment phase is indicated on the right side of this page. 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?
The transaction concerns a USD5m committed senior bilateral loan (“Facility”) plus USD5m uncommitted senior bilateral loan (“Uncommitted Facility”) to fund the Borrower's investment in electric vehicle batteries and battery swapping stations infrastructure in Uganda. The Borrower is 100% owned by Watu Holdings Limited (“Watu”). Founded in 2015, Watu is a leading provider of motorcycle financing in Uganda and Kenya and one of the key players in the PAYGO space across SSA, with 1m+ loans provided and presence also in Kenya, Tanzania, Rwanda, Nigeria, Sierra Leone and DRC. Watu offers product-acquisition finance to households not able to access traditional financial services.
What is our funding objective?
The objective of FMO’s financing is to fund the Borrower’s investment in electric vehicle batteries and battery swapping station infrastructure across Uganda.
Why do we want to fund this investment?
The lack of clean and affordable mobility solutions holds back the shift to a green transportation system in Uganda, a least-developed country (LDC). This transaction addresses this deficiency and aligns with FMO’s Energy and overall strategy. The investment is classified as 100% Green label and 100% Reducing Inequalities label.
What is the Environmental and Social categorization rationale?
This concerns an E&S B categorized investment. Activities come with potential limited adverse risks associated with labor conditions, product safety, waste management. The project shows exposure to IFC Performance Standards (PS) 1 (Assessment and Management), PS 2 (Labor Conditions), PS 3 (Resource Efficiency and Pollution) and PS 4 (Community health and safety, and security). PS 5 (Land Acquisition), PS 6 (Biodiversity), PS 7 (Indigenous Peoples) and PS 8 (Cultural Heritage) are deemed not applicable.
- Region
- Africa
- Country
- Uganda
- Sector
- Energy
- Publication date
- 11/1/2024
- Deadline for feedback
- 12/1/2024
- Total FMO financing
- USD 5.00 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