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CHAMPION OF THE DAY
$20 million fund
for renewable energy
Will finance 25 companies
at commercial interest rates
The Trade and Investment Facilitation (TIF) project and IM Ventures have launched the SoLR& Renewable Energy Fund with a targeted capital of $20 million to finance the purchase and installation of renewable energy systems, primarily solar power, by around 25 commercial and industrial companies at commercial interest rates. Each business sector’s allocation will not exceed 25 percent of the fund’s size.
The United States Agency for International Development (USAID) has contributed a seed capital of $4 million through TIF and IM Ventures. Fundraising the remaining $16 million from private investors and other donors is under way and is slated to close by the end of the third quarter of the current year.
The ticket size ranges from a minimum of $200,000 to a maximum of $2 million. The funding will be provided through purchase or leasing. It will be repaid over five years with a prepayment option at the third year.
“This financing is an opportunity to reduce energy cost,” said Nicolas Rouhana, Chairman of IM Fndng which operates the IM Ventures and IM Capital programs, both funded by USAID. He said that this is also an opportunity for investors in the fund since the targeted internal rate of return (IRR) for investors is 20 percent.
TIF targets investments in social impact projects, agri-food processing, manufacturing, knowledge economy, hospitality, and services. It has allocated $33 million of its $70 million capital for grants.
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Mar 17, 2023
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