Project detail - LEREKO METIER SUSTAINABLE

LEREKO METIER SUSTAINABLE

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Who is our client

Lereko Metier raised R690 million for the final closing of its pioneering Lereko Metier Sustainable Capital fund (LMSC) to make investments in the renewable energy, energy efficiency, water and waste management sectors. The fund exceeded initial targets and obtained support from benchmark local and international institutions, with FMO as an anchor investor.

Funding objective

LMSC targets investments which deliver social and environmental benefits as well as returns on financial capital. The fund combines the dual benefit of leveraging an established private equity house as well as a focused team with a leading renewables, development and clean/green track record in the region. The investment mandate is balanced between renewable energy projects and growth capital investments in other resource efficiency sectors, with a unique blend of team skills, experience and networks allowing for a compelling proposition to entrepreneur teams and an exciting new category for investors. The fund has invested in the 50MW Bokpoort concentrated solar power (CSP) plant in the Northern Cape. This is the largest project in the second round of FMO Energy's Renewable Energy Independent Power Procurement Programme (REIPPP). In a second completed investment LMSC joined as an equity partner with solar photovoltaic developer AE-AMD, which successfully closed two projects under the first round of the REIPPP. The fund has also successfully partnered in three selected wind projects in the third round of the REIPPP.

Why we fund this project

FMO played an anchor investor role in LMSC. Final closing of the fund means that more risk capital is available for renewable energy and clean technologies in Southern Africa, which is fully in line with FMO's investment strategy

Website client
http://www.metier.co.za
Region
Africa
Country
South Africa
Sector
Infrastructure, Manufacturing and Services
Signing date
1/1/2000
Total FMO financing
ZAR 110.00 MLN
Fund
FMO
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)
A
UN Sustainable Development Goals