First close for Afrigreen Debt Impact Fund
French fund manager RGreen Invest and investment advisor Echosys Invest announced the first closing of their new fund, the Afrigreen Debt Impact Fund, raising €87.5 million, which will be used to finance on-and off-grid solar power plants for small and medium-sized commercial and industrial consumers in Africa.
The first closing includes a commitment from the European Investment Bank, the International Finance Corporation, the Belgian Investment Company for Developing Countries, and Proparco. French private banks Societe Generale and BNP Paribas also participated. Afrigreen targets raising a total of €100 million from development finance institutions and private investors.
“Africa boasts 39% of the world’s total renewable potential, and yet investment in renewable energy has been lagging behind, for a set of reasons that includes the lack of suitable financial instruments, which especially affects the most dynamic segment of the market, commercial and industrial solar users,” said Olivier Leruste, president of Echosys Invest, the joint-venture created to structure and manage the Afrigreen investment strategy.
“Representing 90% of all businesses, small and medium-sized enterprises and industries are a segment that struggles to attract financing,” said Nicolas Rochon, RGreen Invest’s CEO. “With this vehicle we intend to deepen the partnership with our French and international partners to provide SMEs and SMIs in Central and West Africa with the backing they need to thrive. We target a diversified portfolio comprising 20 to 30 investments, intervening to meet long-term debt financing needs hovering between €10 and €15 million, with an average ticket around €5 million over eight to 10 years.”