Komaza Forestry LtdStatus: Approved investment
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Who is our customer
Our customer is Komaza Forestry Limited (“KFL”), which is a company in Kenya that is 100% owned by Komaza Group Inc (“Komaza”). Back in 2020, FMO invested USD 7.5m in Komaza, which is a vertically integrated micro-forestry company working with smallholder farmers in Coastal and Central Kenya to address a large and fast-growing wood market in Africa. The funding objective at that time was to support the growth of Komaza within Kenya and potentially across Sub-Saharan Africa.
What is our funding objective?
KFL is currently under administration as the company is in a bankruptcy scenario. Together with some shareholders of Komaza, FMO has structured a short-term bridge funding for KFL of USD 1.5m (USD 500k for FMO) to facilitate an orderly wind-down.
Why do we fund this investment?
FMO facilitates the orderly wind-down of the company by providing the Administrator with bridge funding to liquidate the company. This bridge funding will have priority in repayment from the sale of the assets.
What is the Environmental and Social categorization rationale?
Investments in Komaza were categorized as category B+. This particular transaction however has an E&S risk of category C. The investment has no significant negative environmental and social impacts; the funding will be used to facilitate an orderly wind-down and no forestry-related activities will be implemented in this phase of KFL.
|Total FMO financing
|USD 0.25 MLN
- Agribusiness, Food & Water
- Publication date
- Effective date
- Total FMO financing
- USD 0.25 MLN
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)