SIMA Commercial & Industrial Solar Green Bond B.VStatus: Approved investment
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Who is our customer
SIMA Commercial & Industrial Solar Green Bond B.V. (“SIMA C&I”) is a newly created fund (USD 150 million target size) that will be providing funding to the SME C&I solar company and developer sector in Sub-Saharan Africa. The fund is managed by SIMA LLC.
What is our funding objective?
FMO will provide funding ('the Fund') to SIMA C&I to be used for debt funding to SME energy services and construction companies in Sub-Saharan Africa’s commercial and Industrial (“C&I”) PV sector. It will offer a combination of short (developer) and long-term (project/asset) financing. The Fund’s ultimate goal is to promote the reduction of GHG emissions as well as to support the growth of SME energy companies.
Why do we fund this investment?
Providing energy access to the C&I sector is a key part in the promotion of sustainable operations through using renewable energy. Debt financing for small to medium scale energy companies and projects in Africa is considered particularly scarce. The Fund intends to have substantial impact by targeting an underserved market and would provide a mix of structured debt solutions to help support swift deployment of renewable projects. FMO’s role as investor in the first closing for the Fund will contribute to catalyzing investors and the Fund reaching its target size and deployment timeline.
What is the Environmental and Social categorization rationale?
The Fund has been classified as Category B. Risk exposure of SIMA is low to medium, mainly given contextual risks. The Fund will not invest in any higher unmitigable risk business activities that may include a) involuntary resettlement; b) risk of adverse impacts on indigenous peoples; c) significant risks to or impacts on the environment, community health and safety, biodiversity, cultural heritage; or d) significant occupational health and safety risks. The Fund will mostly focus on rooftop C&I and small scale ground-mounted solar. Note that all investments will be managed in accordance with the IFC Performance Standards, and an Environmental & Social Action Plan will be part of the agreement.
|Total FMO financing
|USD 10.00 MLN
- Website customer/investment
- Publication date
- Effective date
- Total FMO financing
- USD 10.00 MLN
- Building Prospects
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)