Rgreen closes Africa debt impact fund with €100m
Rgreen Invest has announced the final closing of the Afrigreen Debt Impact Fund with €100m (£83.4m) raised.
The fund aims to finance the energy transition in Africa by providing long term debt solutions for commercial and industrial solar and small-size utility scale solar power plants on the continent.
The fund is managed by an investment team at Rgreen Invest, and advised by Echosys Invest – a financial advisory firm which was created to structure and manage the Afrigreen business.
Read more: Rgreen Invest creates dedicated debt business
“We are deeply honoured by the trust of our investors and excited to expand our capital deployment in the region,” said Olivier Leruste, co-founder and chief executive of Echosys Invest.
“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.”
The fund will primarily invest in small and mid-size projects, enabling businesses in Africa to reduce their energy costs, enhance the reliability of their power supply, and lower their greenhouse gas emissions.
It has already completed six investments in Nigeria, Morocco and Botswana. It has a target of funding 15 to 20 projects and portfolios of projects, with granular and diversified financing tickets ranging from up to €15m, and an average investment period of up to 10 years.
Read more: Rgreen Invest to manage energy transition fund for Crédit Agricole Assurances
“This final closing represents a major milestone for Rgreen Invest and for the energy transition financing in Africa,” said Nicolas Rochon, founder and chief executive of Rgreen Invest.
“It is a huge success for an impact fund and more broadly for a first-time fund. 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.”
Read more: UK impact investment firm Ethex secures funding to scale platform
