Project detail - C-QUEST CAPITAL SG AFRICA HOLDINGS

C-QUEST CAPITAL SG AFRICA HOLDINGS

Status: Approved investment
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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 transaction concerns a senior debt facility to C-Quest Capital Africa (CQC-A), to finance the deployment of clean cooking stoves and other carbon programs across various jurisdictions in Sub-Saharan Africa. CQC is one of the market leaders in the sector, offering a scalable model while realizing substantial social impact.

What is our funding objective?

The transaction concerns a corporate facility supporting CQC-A across its business lines, including cookstove deployment and pilot projects, as well as biofuels and cookstove manufacturing activities.

Why do we fund this investment?

Clean cooking stoves have a substantial (social) impact, including a reduction of GHG emissions, avoided deforestation, numerous health benefits, and reduced labour burden for fuel collection. Health and labour benefits particularly affect women. The transaction fits AEF’s clean cooking strategy, as well as FMO EN’s inclusive business and green strategy.

What is the Environmental and Social categorization rationale?

E&S categorization is B. PS1, PS2 and PS3 apply (primarily related to CQC’s manufacturing activities). PS4, PS5, PS6, PS7 and PS8 don’t apply given the nature of the investment (distribution of clean cooking products).

Region
Africa
Country
Africa
Sector
Energy
Publication date
11/12/2021
Effective date
3/4/2022
Total FMO financing
USD 6.40 MLN
Funding
AEF-I
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