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Who is our client

FMO is investing into Société de Production d’Energie Solaire de Ouagadougou S.A.S. (“SPESO” or “Nagréongo” or "the Project"), an SPV established under the laws of Burkina Faso with a total syndicated debt of EUR 21.03 million. The Sponsor is GreenYellow S.A.S. which is in turn owned by the Casino Guichard-Perrachon S.A., a retail conglomerate quoted on the Paris stock exchange. GreenYellow has a large portfolio of rooftop solar power plants with C&I clients in France and is an established IPP in Madagascar, Mauritius and S. America.

Funding objective

FMO’s loan of EUR 6.97 million will catalyze EUR 7.9 million from ICCF both for a 14 and a half-year tenor and mobilise a further EUR 6.16 million from AEF which will have a longer 20-year tenor. This financing will allow for the development, construction, operation and maintenance of a 30MWp solar farm with a total project cost of EUR 27.11 million.

Why we fund this project

This is a greenfield renewable energy development in a low-income sub-Saharan country. Nagréongo will provide clean, reliable electricity to a country that has one of the lowest electrification rates in West Africa at a lower price than current thermal power stations. FMO’s tenor of up to 20 years is not available in the Burkina Faso market and allows the project to offer an attractive tariff to the Government of Burkina Faso.

Environmental and social rationale

Category B+, all IFC PSs triggered except PS7, as there are no Indigenous Peoples groups affected by the project. Key E&S focus areas include marginal economic displacement, security personnel, community engagement and benefit sharing. While local communities and authorities are supportive of the project, proactive management of the project-community relationship and avoiding project-induced intra-community tensions are key areas where the company will continue to focus their efforts, given the deteriorating security context in Burkina Faso, where minor issues can escalate fast. A project-specific environmental and social management system with plans and procedures addressing all relevant areas, including the above, will be implemented by the project company and cascaded down to contractors and subcontractors.

More investments

Date Total FMO financing
4/1/2021 EUR 6.16 MLN
Burkina Faso
Signing date
Total FMO financing
EUR 6.97 MLN
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)