BUGOYE HYDRO LIMITED
Status: Approved investmentWhy disclosure?
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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 customer
The Borrower is Bugoye Hydro Limited (BHL), a special purpose vehicle established to develop, construct and operate a 13MW run-of-river hydro power plant in the Kasese district in Western Uganda. The plant became operational in October 2009. BHL is indirectly wholly owned by Africa Energy Renewable Fund LP (AREF), a USD 200 mln fund which is managed by Berkley Energy Africa Limited.
What is our funding objective?
FMO and Emerging Africa Infrastructure Fund (EAIF) managed by Investec will each provide USD 14.6 million to (i) refinance the existing senior debt, (ii) fund Capex for repair works, and (iii) free up capital that AREF will invest in other greenfield energy projects in Uganda. EAIF was the single existing lender before FMO joined.
Why do we fund this investment?
FMO is financing Bugoye, a small run of the river hydro power plant in Uganda, to support AREF in developing and constructing other greenfield renewable energy projects in Uganda. Part of the loan has been earmarked for repair works that should improve the long-term robustness of the plant. Furthermore, this financing, which is one of the first refinancings of a small hydro power plant on the continent, is an important milestone for Uganda’s renewable energy sector. BHL has generated 78 GWh of clean energy per year on average and has supported the strengthening of Uganda’s grid in the west of the country. FMO is additional in this transaction by providing long-term debt, which is not available on the commercial market in East Africa. The project coincides with FMO’s strategy to contribute to clean energy projects in emerging markets.
- Region
- Africa
- Country
- Uganda
- Sector
- Energy
- Effective date
- 7/13/2017
- Total FMO financing
- USD 14.65 MLN
- Funding
- FMO NV
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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+