The Facilityfor Energy Inclusion (“FEI”), Finnfund, and the asset management company of ieng Group, Communication & Renewable Energy Infrastructure (“CREI”), signed USD 20 million facilities to finance its Telecom Energy Service Company (“TESCO”)in South Sudan.
June 28, 2024 – FEI and CREI signed a USD 15 million bridge facility to finance renewable energy assets in South Sudan. This financing will enable CREI to provide “energy as a service” to a telecom stakeholder in South Sudan by developing, building,operating, and maintaining energy assets. The Finnish development financier and impact investor, Finnfund, signed a USD 5 million mezzanine loan to finance the project.
“The Facility for Energy Inclusion continues to play a leading role in the TESCO sector in Africa where the Funds has been able to leverage its experience to provide a tailored and pragmatic financial solution to deliver this landmark transaction in South Sudan. This is a testimony of FEI and Cygnum Capital’s ability to support investment across frontier markets”, said Carmen de Castro, Managing Director and FEI Fund Leadat Cygnum Capital.
“This investment is aligned with our goals for both digitalisation and climate action. We see that improving mobile connectivity supports economic growth, improved living standards and an inclusive society”, says Valtter Louhivuori, Head of the Nairobi office at Finnfund.
“We are thrilled to join forces with FEI and Finnfund in financing our TESCO project in SouthSudan. This partnership aligns with our mission to lead the transition towards sustainable telecom and energy infrastructure across Africa and Asia; and achieve lasting positive impact. We are confident that our combined efforts will enable the telecom stakeholder to expand and contribute to the telecom sector development of South Sudan”, said Kadri El Hakim, CEO at CREI.
FEI is managed by Cygnum Capital and was advised by Trinity International (legal) and IBIS Environmental Social Consulting Europe (E&S) on this transaction.
About CREI
CREI is an established asset management company holding a portfolio of telecom towers and renewable power assets across Africa and Asia. Its main activities entail providing sustainable energy and connectivity to Mobile Network Operators(MNOs) and rural communities across developing countries. CREI capitalizes onthe expertise and synergies created throughout its group of affiliated companies to provide a full service to Operators and Investors and deliver efficient solutions that are integrated along the value chain. CREI manages a portfolio of Telecom ESCO, TowerCo, and Network as a Service (NaaS) projects to help MNOs decrease their carbon footprint while improving their network performance and reach.
CREI is part of a global telecom services group, Two Thirty Three Holding Group.
About Cygnum Capital
Cygnum CapitalGroup is an investment bank and asset manager, operating across frontier and emerging markets. Cygnum Capital Asset Management manages five pioneering funds: four debt funds including: (i) the African Local Currency Bond Fund (“ALCBF”),a ground-breaking investment vehicle established to support local currency capital markets, (ii) Off-Grid Energy Access Fund (“OGEF”) which supports companies in off-grid energy such as SHS and small- medium mini-grids, (iii)FEI which support companies that provide a range of renewable energy solutions such as medium-large mini- grids, C&I and IPP with a maximum capacity of 25MW, and (iv) AfricaGoGreen Fund (“AGG”) which supports companies combating climate change by reducing the use of fossil fuels through new technologies and that increase energy efficiency and promote economic development in high impact target sectors; and a VC private equity fund (v) E3 Low Carbon Economy Fund for Africa(“E3 LCEF”) which invests in climate-smart services, digital connectivity & applications, low-carbon productivity enablers. Cygnum Capital Asset Managementhas over USD830 million in assets under management with investments in 32 African countries.
https://www.cygnumcapital.com/
About the Facility for Energy Inclusion
FEI is designed to support small-scale independent power producers delivering power to the grid, mini-grids,commercial and industrial and captive power projects. FEI was set up by the African Development Bank (“AfDB”) as part of its New Deal for Africa initiative. In addition to the investment by the AfDB, FEI received equity funding from the German Federal Ministry for Economic Cooperation and Development through KfW and Norfund and loan commitments from the Austrian Development Bank and the International Finance Corporation (IFC). The AfDB also invested on behalf of the Clean Technology Fund and the European Commission.
The transaction was supported by FEI’s Project Preparation Facility (“PPF”), funded by the Global Environment Facility, through the AFDB.The PPF provides returnable grant funding for last-mile processes crucial to closing transactions and to fund due diligence and preparatory costs incurred in establishing innovative structures or transactions that FEI seeks to lend to.
About Finnfund
Finnfund is a Finnish development financier and impact investor. We build a sustainable future and generate lasting impact by investing in businesses that solve global development challenges. We invest 200–250 million euros in 20–30 companies in developing countries each year. Our focus sectors include renewable energy, sustainable forestry, sustainable agriculture, financial institutions, and digital infrastructure and solutions. Today Finnfund’s investments, commitments, and investment decisions total about 1.23 billion euros, half of them in Africa.The company has 97 employees based in Helsinki and Nairobi.
https://www.finnfund.fi/
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