ACPF – Access to Clean Power Fund
- Asia Pacific
- Solar PV
- Business model
Contract signature: March 2020
Region: Africa, Asia, Latin America
Country: India, Kenya, SSA countries, SE Asian countries, etc in line with exclusion list
Sector: C&I, Energy Access and other links of the energy access value chain
Total ElectriFI Financing: USD 3m
Environmental and Social Category: B
(A) high risk, (B+) medium high risk, (B) medium risk or (C) low risk
Project overview: EDFI ElectriFI is providing additional first-loss capital for a responsAbility-managed energy debt fund targeting universal access to clean power. ElectriFI subscribed a USD 3m junior capital to responsAbility Access to Clean Power Fund (ACPF), a 10y closed-ended Luxembourg SICAV set-up to respond to the (debt) funding gap towards universal access to clean and affordable modern energy in underserved markets.
Funding objective and impact: By further strengthening the Fund’s capital structure, responsAbility aims to mobilize additional private capital in line with SDG7. ElectriFI’s investment aims to contribute to several impact targets, notably: 865.000 tons of CO2 avoided per year, 4.41GW installed capacity and ~6700 jobs created over 10 years.
Why ElectriFI wants to fund this project: ACPF fills-in the unmet market demand for debt funding from small but growing C&I players (SMEs, schools, hospitals, etc.) in Asia and Africa mainly. In addition to supporting ambitious and well-quantified impact objectives (see above), this ElectriFI investment plays a clear catalyst role straightening the whole structure. Indeed, the ElectriFI instrument used is Junior Equity with first loss mechanism, which not only allows strict compliance with the fund risk ratio’s but also provide additional comfort to Senior and Mezzanine investors, hence attracting more funding.