Rgreen Invest and Echosys Invest have secured €100m in commitments, including support from the European Investment Bank, the International Finance Corporation and Dutch entrepreneurial development bank FMO, for a debt fund that will provide financing for solar projects in Africa.
The Afrigreen Debt Impact Fund is also backed by institutions, including French development finance agency Proparco, the Belgian Investment Company for Developing Countries, as well as private investors such as Société Générale and BNP Paribas.
The fund – managed by Rgreen and advised by Echosys – expects to finance 15 to 20 projects or project portfolios, with fundings of up to €15m and an average investment horizon of up to 10 years.
The fund, that provides long-term financing for commercial, industrial and small-scale utility solar projects, has already completed six investments across Nigeria, Morocco and Botswana.
Nicolas Rochon, founder and CEO of Rgreen Invest, said: “We are proud to collaborate with international institutional and private investors committed to supporting the continent’s sustainable development.
“Working alongside these highly qualified partners is an inspiration in terms of ESG and impact best practices, and we have expanded these highest environmental and social standards across all investments and funds managed by Rgreen Invest.”
Olivier Leruste, co-founder and CEO of Echosys Invest, said: “Afrigreen’s initial investments have confirmed the growing demand for capital among project developers and operators who are successfully persuading commercial and industrial companies in Africa to transition to solar power through power purchase agreements.
“These investments have also highlighted a significant pipeline of utility-scale projects under 30MW that are ready to connect to national grids without requiring major transmission upgrades. With the right project finance solutions implemented swiftly and pragmatically, construction can begin immediately.”
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