Project detail - ENERGY ACCESS RELIEF FUND B.V.

ENERGY ACCESS RELIEF FUND B.V.

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Who is our client

The Energy Access relief Fund (‘EARF”) will be a newly created debt fund to provide Covid19 relief funding to Access to Energy Companies (offgrid SHS, clean cooking and Minigrid companies). This fund will be established and managed by Social Investment Managers & Advisors, LLC (SIMA). EARF aims to become a US$100M fund with FMO participating in the first close of ~US$35-40M, together with multiple stakeholders.

Funding objective

The EARF aims to address two main barriers: (1) offer liquidity to preserve and support the access to affordable, reliable, sustainable and modern energy for all and (2) help stabilize the energy access sector by providing security for local clean energy jobs.

Why we fund this project

Lack of energy and financial access to the Bottom of the Pyramid (BoP) and businesses continues to hold back social and economic development in (particularly) SSA. Today, the impact of Covid19 in LDC countries could jeopardise the progress made so far towards achieving Sustainable Development Goal 7 of Affordable and Clean Energy. This fund aims at protecting this progress by contributing to a positive economic, social and environmental impact, while providing the much needed relief capital today.

Environmental and social rationale

This transaction is labelled as E&S risk category B. The fund focuses primarily on companies providing Access to Energy (offgrid SHS and minigrids) to the Bottom of the Pyramid. The fund has a well-defined E&S policy, that aligns to IFC PS and will not undertake projects classified as E&S category A.

Region
Africa
Country
Africa
Sector
Infrastructure, Manufacturing and Services
Signing date
8/3/2021
Total FMO financing
USD 5.00 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