RGreen Invest, Echosys achieve first closing for investment fund

Rgreen Invest and Echosys have announced the first closing of their new Afrigreen Debt Impact Fund, aimed at financing solar power production across Africa. The first closing, totaling EUR87.5 million (US$92.6 million), will provide debt financing for on- and off-grid solar power plants for small and medium-sized commercial and industrial consumers in West and Central Africa.

The fund intends to offer direct lending and asset-based debt facilities for regional and international developers, as well as African commercial and industrial companies, to develop solar PV energy infrastructure. Rgreen Invest and Echosys Invest plan to diversify the portfolio with 20 to 30 investments, with an average investment of about EUR5 million over eight to ten years.

The impact targets of the fund will be measured in terms of MW installed, MWh produced, tons of CO2 emissions reduced and liters of fuel saved, as well as the number of companies accessing new financing channels to upgrade their power generation facilities and enhance their efficiency. The fund aims to raise EUR100 million (US$106.2 million) from development finance institutions and private investors, and the first closing included commitments from the European Investment Bank and the International Finance Corporation.