FMO has agreed to invest in Camco REPP 2 SCSp, a newly created fund providing debt and hybrid instruments to renewable energy projects and companies in Sub-Saharan Africa, focusing on least developed countries (LDCs). 

The Fund is managed by Camco Management as fund advisor supported by Innpact Fund Management, as the third-party alternative investment fund manager. REPP2 fund is a successor of the Camco-managed REPP phase 1 fund.

FMO will invest up to $50m into the Fund’s debt layer, of which up to $30m will be committed to the Fund’s first close. 

First-close fund size will be around $100m and final target fund size is $250m.

FMO’s funding will be invested into different projects and companies in the renewable energy sector, including smaller Independent Power Producers, mini-grids, isolated grids and energy access companies. 

REPP2’s investment objectives are (i) to invest and support the small to medium scale distributed renewable energy sector in Sub-Saharan Africa (as defined by the UN) with a particular focus on LDCs, thereby achieving a sustainable return on investments for investors, and (ii) to mitigate GHG emissions and build the climate resilience of the energy system.

Debt financing for small to medium scale energy companies and projects in Africa is considered scarce, particularly in LDCs. The Fund is highly aligned with FMO’s strategy to reduce inequalities between countries and to support initiatives related to energy access. 

FMO’s Green and Reducing Inequalities labels are expected to apply 100% given the investment focus of REPP2 on renewable energy projects in LDCs.