BUEN MANEJO DEL CAMPO S.A. DE CV
Who is our client
Sistema.bio manufactures, sells, installs, finances and services a range of modular biogas digesters and accessories designed for smallholder farmers. Since its inception in 2010 the company has installed over 20,000 units from hubs in Latin America, Kenya and India. Designed to serve farms from 2 to 200 cows, the product range varies in size from a single 6m³ biodigester, to a number of interconnected 40m³ units. With the biogas produced, an average household of five can meet the majority of is cooking needs with the smallest unit. Besides cooking, larger systems can also be used for water or space heating and running mechanical/electrical appliances such as a chaff cutter, water pump or milking machine.
After an initial loan facility of USD 1mln in 2019, FMO will provide another USD 1mln alongside the existing investors: EDFI ElectriFi, Engie RDE and Co Capital, as well as new investors: Chroma and Blink CV. This financing will enable the company to continue its scale up and international expansion principally in Kenya. This financing might be converted into equity in the next capital increase within the next 12-24 months.
Why we fund this project
Sistema.bio provides smallholder farmers in rural areas access to a renewable source of energy (biogas) which can be used to replace fossil fuel and wood-fired cooking, and biofertilizer (bioslurry) which can be used to increase crop yields and replace chemical alternatives. In addition, the replacement of wood, fossil fuels and chemical fertilizers together with the efficient management of animal waste mitigate GHG emissions and have significant health benefits. Moreover, use of biogas reduces the time and labour burden of fuelwood collection. Combined, these contribute to an increase in household productivity and cost savings, leading to socioeconomic empowerment and ultimately spurring economic growth. By providing a loan to Sistema.bio, FMO helps to close a financing gap and supports the company to expand into new markets and increase their social and environmental impact.
Environmental and social rationale
The Project is rated category B. Activities come with minimal environmental and social risks and potential negative impacts. Key environmental and social policies and procedures were developed. For this investment the IFC Performance Standards (PS) 1, 2, 3 and 4 are applicable due to the manufacturing of equipment, transport and use. The remaining PSs do not apply as no new land is needed (PS 5), there are no material negative impacts on biodiversity (PS 6), the due diligence did not indicate any specific impacts on Indigenous People and/or vulnerable groups (PS 7) and the diligence did not reveal any impacts on cultural heritage including cultural objects or places of spiritual importance (PS 8).
|Date||Total FMO financing|
|12/18/2019||USD 1.00 MLN|
- Website client
- Signing date
- Total FMO financing
- USD 1.35 MLN
- 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)