Project detail - SDG INVESTMENT FUND S.A.

SDG INVESTMENT FUND S.A.

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Who is our client

The Energy Entrepreneurs Growth Fund (“EEGF”) is a new investment vehicle with a flexible product offering, mainly providing debt financing (incl. mezzanine and subordinated debt) to high impact energy enterprises that are primarily active in off grid and/or decentralized energy solutions. The Fund will be managed by Triple Jump, while Persistent Energy Capital will act as advisor to the Fund.

Funding objective

EEGF will be able to provide tailored debt financing products (as well as equity up to 30% of the fund) to a broad range of companies in the wider energy access space (incl. early stage companies to bridge the financing gap to commercial capital), while its long fund life allows investments into sectors that require patient capital (e.g. C&I sector and mini-grids but also so-called second generation SHS companies). EEGF will serve as a ‘one-stop shop’ able to potentially provide multiple rounds of funding, reducing time spent on capital raising by investee’s senior management. Next to financing, EEGF is set-up to provide hands-on support to investees.

Why we fund this project

The Fund is highly aligned with FMO’s strategy to support initiatives in the off-grid solar segment globally. Through its financing, the Fund aims to contribute to a positive economic, social and environmental impact, while providing a reasonable market-based financial return.

Environmental and social rationale

This transaction is labelled as E&S risk category B, similar to the classification of other off-grid and renewable energy debt funds in FMO’s portfolio. The fund focuses on small and medium sized companies providing off-grid solar market solutions to end consumers. The fund has a well-defined E&S policy.

More investments

Date Total FMO financing
12/4/2019 USD 7.50 MLN
Website client
http://www.shellfoundation.org
Region
Africa
Country
Africa
Sector
Energy
Signing date
12/4/2019
Total FMO financing
USD 7.50 MLN
Fund
Access to Energy Fund
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