SOCIETE DE PRODUCTION D'ENERGIE – EUR 6.16 mln Debt
Société de Production d’Energie Solaire de Ouagadougou (“SPESO” or “Nagreongo”) is an SPV established under the laws of Burkina Faso. Nagréongo will provide clean, reliable electricity to a country that has one of the lowest electrification rates in West Africa. This will be done at a lower price than current thermal power stations. The AEF-loan has a tenor of up to 20 years, which is not available in the Burkina Faso market and allows the project to offer an attractive tariff to the Government of Burkina Faso. The AEF loan catalyzes another EUR 6.97 million from FMO plus EUR 7.9 million from ICCF in loans (both 14.5 year).
Africa Renewable Energy Fund II – EUR 8 mln Equity
The Africa Renewable Energy Fund II (“AREF II”) is a private equity fund investing in clean energy generating assets across Sub-Saharan Africa (excluding South Africa). AREF II is the follow-on fund of the AREF, in which FMO invested in 2014 via AEF and Building Prospects and is managed by Berkeley Energy (the “Fund Manager”). By investing in the Africa Renewable Energy Fund II, AEF and BP seek to address the market need for energy in Africa in a sustainable and responsible manner, by increasing the production of clean energy and targeting the Least Developed Countries (“LDC”) in Africa. Next to the AEF equity, Building Prospects provides EUR 10 million.
ZIZ Energie Ltd. – EUR 1 mln convertible note and EUR 2.5 mln mezzanine loan
ZIZ is a vertically integrated provider of off-grid energy operating in Chad. The Company sells electrical equipment, performs EPC services, and operates metro-grids in 5 cities in the country. A metro-grid is a hybrid solar plant with an electric urban network for cities of more than 25,000 inhabitants. In the 5 cities, Ziz upgrades existing diesel-powered plants with solar and battery storage capacity. AEF first provided EUR 500,000 in 2020 for a convertible note. This amount was increased in 2021, with EUR 1 mln plus a EUR 2.5 mln mezzanine facility, for the construction of two sites and for the development cost of new sites.
Evolution II d.Light Limited – USD 1.47 mln convertible note
d.Light is one of the world’s leading off-grid solar players, with an estimated 26% market share in branded off-grid solar products. d.light is primarily active in India and Kenya, as well as in a wide range of other countries. D.Light has sold over 15 million solar products during the last 5 years and has a proven track record in the pay as you go (“PAYGO”). It offers a full off-grid solar product range, ranging from small portable lanterns to small / mid-size PAYGO SHS with radio and TV.
Energy Access Relief Fund B.V – USD 5.0 mln debt
The Energy Access relief Fund (‘EARF”) is a newly created debt fund to provide Covid19 relief funding to Access to Energy Companies (SHS, clean cooking and mini-grid companies). Lack of energy and financial access to the Bottom of the Pyramid (BoP) and businesses continues to hold back social and economic development. Today, the impact of Covid19 in the least developed countries (“LDCs”) could jeopardize the progress made so far towards achieving Sustainable Development Goal 7 of Affordable and Clean Energy. The fund aims at protecting this progress by contributing to a positive economic, social and environmental impact, while providing the much-needed relief capital today.
Quadran Burkina Faso S.A. – EUR 4.55 + 2.05 mln debt
FMO is investing into Quadran Burkina Faso S.A (“Zano”), an SPV established under the laws of Burkina Faso with a total syndicated debt of EUR 20.25 million. Zano is a greenfield solar plant which will provide clean, reliable electricity. The FMO-A investment is highly additional as there are no commercial banks in Burkina Faso that can provide financing over the 18-year tenor required to make the projects work. The tenor extension of 2 years provided by the AEF tranche makes the total financial structure bankable. Together with Nagréongo (see above) and Kodéni (financed in 2020), these are the first commercially financed energy projects in Burkina Faso.
Africa REN Energy S.A. – EUR 5.5 mln equity
Africa REN has been established to purchase, construct and operate renewable energy projects in West Africa, amongst others in Senegal, Burkina Faso. All projects owned by the Africa REN platform provide clean and reliable electricity to countries which have low electrification rates, at lower prices than current thermal power stations. The projects are considered high risk, due to the greenfield stage and the country risks. With FMO’s investment (via AEF and Building Prospects), value can be achieved across all parts of the chain, including development, construction, creating long-term value for the countries.
Winch IPP Holdings Limited – USD 2.1 mln debt
Winch is developing, constructing, and operating mini-grids in several African jurisdictions. The AEF loan is to develop a total of 49 mini-grids in Sierra Leone and Uganda, together with donor funding from DFID, UNOPS and GIZ. When constructed, further expansion will be sought in Nigeria, Togo, Uganda and Zambia. The mini grids comprise of ground-mounted solar PV generation, storage units (batteries), low voltage distribution infrastructure, internal wiring, and metering.
Scatec Ukraine/ Chysta Enerhiia-2011 – USD 819k guarantee
Scatec Solar is a Norwegian developer, investor and constructor of solar projects in emerging markets. In 2019 AEF provided equity and a shareholder loan to Scatec Ukraine (Kamiyanka). The project has suffered considerable delays in finalization of the grid connection due to delays by the grid operator, amongst others as a result of COVID-19. While the project is operationally performing well , the senior debt needed restructuring including a guarantee from the shareholders.