Project detail - Energy Vision Limited

Who is our customer

Energy Vision Ltd. is an energy services company (ESCO) providing end-to-end energy services to telecom towers owned by mobile network operators or tower companies. EV’s business model is to reduce the reliance on expensive and carbon-intensive diesel generators by installing hybrid power equipment (a combination of batteries, solar panels and diesel generators, all controlled by a remote monitoring system), implementing energy efficiency measures, and where possible connect off-grid towers to the grid. This leads to substantial cost reductions and GHG savings. EV was incorporated in 2014 and as of September 30, 2022 provides energy services to around 680 towers in Gabon (for Airtel) and Nigeria (for 9mobile and MPS). EV is owned by its co-founders, South African PE fund Metier through its MSCII Fund and Israel-based asset manager Altshuler Shaham, through its Altshuler Shaham Provident and Pension Fund.

What is our funding objective?

The objective of FMO’s proposed financing is as follows: (i) to refinance existing OpCo’s debt in full; (ii) to finance the procurement, construction and installation of hybrid energy equipment, including battery storage solutions, DGs and renewable energy solutions related to new contracts; (iii) to finance the Borrower’s project development costs associated with a new contract; (iv) to finance the Borrower’s and OpCo’s operating costs; and (v) to pay agreed fees, costs and expenses incurred in connection with the debt funding transaction. At least 50% of the proceeds are to be used in Sub Saharan Africa, the remainder in Asia (all in FMO eligible countries).

Why do we fund this investment?

EV’s business model results in significant GHG emission reductions (76% reduction in diesel usage and GHG emissions achieved in the current portfolio). EV’s services allow telecom towers to have >99.99% uptime, thereby improving vital telecommunications infrastructure, especially in off-grid and rural areas. EV has a strong management team in place with proven experience in rolling out the business. It was the first pure-play ESCO in Africa and now has a successful 7-year track record. The Company is backed by reputable shareholders and benefits from diversified, predictable cash flows. EV fits well within FMO’s new strategy; the Company is a pioneer in the pure-play ESCO space; our funding will allow EV to significantly scale up its business.

What is the Environmental and Social categorization rationale?

This concerns an E&S Category B+ investment. FMO’s environmental and social due diligence indicates that the investment will have impact which must be managed in a manner consistent with the following IFC Performance Standards: PS 1 – Assessment and Management of Environmental and Social Risks and Impacts PS 2 – Labor and working conditions PS 3 – Resource Efficiency and Pollution Prevention, and PS 4 – Community Health, Safety and Security. The following Performance Standards, PS 5 Land Acquisition and Involuntary Resettlement, 6 Biodiversity Conservation and Sustainable Management of Living Natural Resources, 7 Indigenous Peoples and 8 Cultural Heritage are not considered applicable as EV installs the batteries and (where relevant) solar panels in already existing telecom towers. There is no land acquisition process undertaken by EV and there is no impact of their installations on biodiversity, indigenous people, or cultural heritage. The space required for their equipment is relatively small and is done on the existent telecom tower facilities.