Project detail - NEW FORESTS (RWANDA) LTD.

NEW FORESTS (RWANDA) LTD.

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Who is our client

FMO and Finnfund have signed a shared USD15 million (USD7.5 million each) senior loan to support New Forests Rwanda (NFR), a subsidiary of New Forests Company Holdings Ltd. The new funding for NFR will go towards the development of a plantation in a concession located around the Nyungwe National Park (NNP), and will support NFR's core business, transmission poles and building up a sawn timber market.

Funding objective

Funds from IDF will be used for capex, refinancing existing shorter term debt, working capital and includes a USD5 million contingency facility. New Forests Company Holdings (NFCH) will provide an additional USD2 million funding if the contingency facility is triggered.

Why we fund this project

The project is fully in line with FMO's doubling impact, halving footprint strategy with significant positive impact on GHG emissions through reforestation and protection of the 900 km2 NNP. The Project also facilitates GoR's rural electrification infrastructure (Access to Energy) roll-out with significant employment creation through a smallholder roll-out strategy. NFCH Group has clear, long term sustainable development objectives in the forestry sector in East Africa, with a good track record, focus on cash flow and a robust/tested ESG management system.

More investments

Date Total FMO financing
10/28/2016 USD 1.50 MLN
Region
Africa
Country
Rwanda
Sector
Energy
Signing date
10/28/2016
Total FMO financing
USD 6.00 MLN
Fund
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)
A