Solesco Centroamérica S.A. - EUR 5.6 mln debt
Solesco Centroamérica (Kingo) is a company active in Guatemala. The Company’s business model consists of installing and renting out solar home systems (PV module + light bulbs & USB port) where the client can access energy service on a prepaid basis. The financing is used for the acquisition and installation of 54 k new solar kits.
Husk Power systems - EUR 4.4 mln equity
Mini-grids is a relatively new area of focus for FMO with a high potential impact. It fits well with the strategy of IDF as the opportunity is 100% green, inclusive and creates vital energy infrastructure in remote and off-grid rural areas in India & Tanzania. Moreover, the markets addressed by Husk are in some of the poorest regions in India and Tanzania, and home to 200mln of the world's 1.2 bn people globally that are unconnected to the grid. Until recently the mini grid segment was predominantly funded by grant money combined with a few early stage impact driven equity investments. Commercial and even DFI capital remained shy of the sector due to overall market immaturity and a lack of accessible business model data. Therefore, investing in this sector can already be considered additional. Moreover, it can be seen in a broader scope as being catalytic when the sector starts moving away from grant money and towards DFI and later Commercial funding.
d.Light - EUR 2.8 mln equity
The off-grid market offers an opportunity to provide the Base of the Pyramid (BOP) consumers access to green electricity, and therewith contribute to social and economic development in (particularly) SSA and India. The d.Light lanterns and the smaller range of PAYGO products especially caters to the BoP consumer and allows customers to gradually grow their system size. The transaction therefore fits IDF’s inclusive business strategy, its green strategy as well as economic development.
Althelia Sustainable Ocean Fund SIF S.C.A. - EUR 4.3 mln equity
The Althelia Sustainable Ocean Fund (“ASOF”) will provide structured debt-/mezzanine products with equity upside to sustainable wild fisheries, aquaculture projects, seafood supply chains and for coastal development and conservation projects. ASOF provides scarce funding for much needed scaling up of fisheries/aquaculture/conservation projects, and contributes greatly to job creation and climate impact.
Yoma Strategic Holdings - EUR 7.0 mln debt
In November IDF contributed an USD 8 mln tranche to a USD 25 mln loan with Yoma Strategic Holdings for the expansion of its Agri-equipment business in Myanmar via its subsidiary CPCL. Together with Yoma and CPCL, FMO will implement training programs for farmers on how to make best use of agricultural mechanization and to apply Good Agricultural Practices . The loan is complemented by a greenshoe of USD 25 mln targeting new Yoma companies in the agricultural sector in 2019 for cold chain development, fertilizer production and distribution, and vegetables processing with contract farming. With this transaction, the agricultural sector in Myanmar will be positively impacted. Moreover, it dovetails IDF’s overall mission by targeting several SDG’s , including SDG 8 (Decent work and Economic Growth), SDG 9 (Industry, Innovation and Infrastructure) and SDG 10 (Reduced Inequalities).
Miro Forestry Developments Limited - EUR 11 mln mezzanine
Miro is one of the largest forestry plantation companies in West Africa, with currently 10,000 ha planted. Miro develops and manages high quality, cost-competitive, FSC certified, fast growing industrial timber species and is in the process of setting up the respective downstream production facilities and market entries to capture the maximum value of the wood grown. FMO will provide a USD 10 mln mezzanine finance as part of the USD 34 mln package for the 2018-2020 investment period.
Ecoenterprises Partners III, L.P. - EUR 6.3 mln equity
EcoEnterprises Partners III is a mezzanine fund providing growth capital to innovative SMEs operating in sectors that preserve biodiversity and natural resources in Central and South America. The fund has a very distinctive investment strategy of fund 1 and fund 2 by targeting only businesses that promote a sustainable use and conservation of natural resources (sectors such as sustainable agriculture, agro-forestry, aquaculture, ecotourism and wild-harvested forest products). This fits well into IDF's aim to support infra, agri and forestry investments that are sustainable. Moreover, the investments are inclusive.
Novastar Ventures Africa Fund II LP - EUR 4.3 mln equity
Novastar focuses on providing seed and early stage growth capital to companies with innovative business models that can provide sustainable and scalable solutions to the low-income population (defined as people living on less than $4 per day) in essential sectors such as healthcare, agriculture, education, renewable energies or access to internet. The first fund made 13 investments (15 including the two recently approved) and is now fully committed on the basis of the reserves made to participate in follow on rounds. The key change in strategy for fund 2 is the intention to (prudently) expand to Western Africa by establishing a Lagos office in Nigeria.
Burapha Agro-Forestry Co. Ltd - EUR 4.4 mln mezzanine
Burapha is a Swedish-owned forest plantation and processing company, which develops and manages agroforestry plantations in the greater Vientiane area (Laos). Burapha’s strategy is to increase its plantation base and to build a plywood mill of nominal capacity 59,000 m3, with the ultimate objective to produce cost competitive wood products (plywood and pulpwood) for export.