FMO and Metier could co-invest in African power platform

Posted on: 22 February, 2021 at 11:46 AM

Dutch development financier FMO is proposing an equity investment of €10.9 million which will be used towards the acquisition of 60% of the equity rights in Senergy 2, 100% of Kodeni Solar and 90% of Walo Storage.

The financing will further facilitate the development, construction and operations of these projects. In addition, FMO will provide an additional €2 million to the Africa REN Development Company (Africa REN AssetCo), which will be used to finance new development projects. This is a co-investment with FMO investee Metier Sustainable Capital International Fund II LP, which will become a shareholder in Africa REN AssetCo alongside FMO.

Africa REN AssetCo is a platform company that will be established. It is the intention that the Africa REN platform will grow into a larger IPP active in West Africa, owning and operating renewable energy projects. Africa REN will own and operate the Senergy 2 solar PV plant in Senegal (in operation), Kodeni Solar (a solar PV plant in Burkina Faso which will commence construction early 2021), and Walo Storage (solar-powered storage facility in Senegal which will commence construction mid 2021).

The Africa REN platform will aim to contribute to the development, construction and operations of (greenfield) renewable energy projects in low-income sub-Saharan countries. All projects owned by the Africa REN platform will provide clean and reliable electricity to countries which have low electrification rates, at lower prices than current thermal power stations. Africa REN thereby aims to secure diversification of the electricity mix, increase in (specifically rural) energy access, sustainable local employment and transfer of knowledge and competencies in the West African region. Africa REN is committed to sustainable development and to ensure that the environment and society at large benefit from its projects.

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