On Friday, French fund manager RGREEN INVEST and investment adviser ECHOSYS INVEST announced that a new 87.5 million euro ($92.63 million) investment fund will finance solar power generation in Africa. Emphasis on West and Central Africa.
According to the statement, the AFRIGREEEN Debt Impact Fund’s first closure will finance on-grid and off-grid solar projects. Essentially for small and medium-sized commercial and industrial clients across the continent.
The project provides direct loans and asset-based funding for solar infrastructure development to regional and international developers. Plus african commercial and industrial businesses.
According to the press release, organizations need a portfolio of twenty to thirty assets to finance their long-term debt financing needs of €10 to €15 million, or €5 million over eight to ten years.
The International Development Association’s Private Sector Desk helps the Fund provide long-term local currency credit in Ghana and Nigeria.
The fund’s effect targets include installed megawatts (MW), produced megawatt hours (MWh), tonnes of CO2 emissions, liters of fuel saved. Including the number of firms directly or indirectly using the new funding channel.
Also, the impact is assessed by the number of commercial and industrial firms that can upgrade and optimize their power producing assets.
Société Générale (SOGN.PA) and BNP Paribas (BNPP.PA) have concluded their first round of funding, according to the statement.
Furthermore, the group seeks to raise a total of EUR 100 million from private investors and development financiers.
