Funding Database
ElectriFI – Debt
Utilising energy resources for agricultural productivity (e.g., grain milling, irrigation, water pumping, cold storage and refrigeration, agricultural processing, etc.)
Credit/loans offered with assets (e.g., inventory and equipment used as collateral). Transaction is recorded on the balance sheet as a debt affecting the financial position of a company.
Credit/loans offered with assets (e.g., inventory and equipment used as collateral). Transaction is not recorded on the balance sheet as a debt but recorded as part of a separate entity known as a Special Purpose Vehicle (SPV) or Special Purpose Entity (SPE).
Involves utilising a company’s accounts receivables as collateral for a loan.
Funds used to purchase physical assets such as property, plants, buildings, technology, and equipment. Brick and mortar only (including construction and labour), no soft costs included.
Cooking that utilises cleaner fuels and technologies, instead of polluting fuels or inefficient equipment. In this context, this term covers fuel and stove as well as fuel only (biomass, biogas, LPG, etc.) solutions.
Securities pledged to ensure repayment of a loan.
Refers to power generation systems for commercial and industrial facilities; applies to both on-site power and heat production systems.
Debts that have longer than commercially available loan tenors, lower than commercially available interest rates, less restrictive collateral requirements, or forgiveness for all or some part of the principal.
A specific type of debt that is dependent on uncertain future developments. Contingent debt is not a definitive liability, as it is based on the outcome of a future event.
Development finance institutions (DFIs) are specialised development organisations that invest in private sector projects in developing countries to promote job creation and sustainable economic growth. DFIs are typically majority owned by national governments.
Independent Power Producers that are in the pre-PPA stage but are in the process or have already obtained relevant permits.
A metric used in financial analysis to estimate the profitability of potential investments.
Refers to the timeframe within which an investment will be held before being sold.
As opposed to “pari passu” guarantee coverage, where the guarantor covers loan losses on an equal basis with a lender, (i.e. where the loan principal is $1000 and $100 is lost and the pari passu cover is 50%, the guarantor pays out only 50%). With first loss, the guarantor provides a pay-out of 100% of the losses up to first loss cover, (i.e. where the loan principal is $1000, and the first loss coverage is 10%, on the same $100 lost, the guarantor provides a pay-out of the full $100, since it is not greater than 10% of the loan amount).
According to the Gender Lens Investing Initiative, Gender Lens refers to a strategy or approach to investing that takes into consideration gender-based factors across the investment process to advance gender equality and better inform investment decisions.
A form of financial assurance used to secure debt liabilities. Can be called upon (called a guarantee call) by the lender in the event of a loan default or payment arrears. The guarantee provider is called a guarantor.
An investor who only considers investments meeting certain economic, environmental, and social criteria, while also generating financial returns.
Refers to an enterprise with the majority of ownership by nationals of a Sub-Saharan African country, the Caribbean or the Pacific. Given the widely varying definitions of the term in this sector, a financier focusing on the origin of the management team (or another aspect, or a combination of aspects) is also considered valid.
Financial assurance provided for one individual transaction.
Involves utilising a company’s purchased inventory as collateral for a loan.
A type of debt that is only paid out after other debts are settled when a company gets liquidated due to insolvency.
IPPs that have equity partners but no EPC contract and no debt financing.
A claim put on installed equipment to be used as collateral.
Funds paid out to an organisation based on some percentage contribution made to the total project cost by the grantee.
A form of debt instrument that is subordinated to senior debt. Mezzanine debt is typically classified as “equity,” given that it can be converted into equity in the company in case of default. However, for funds with no additional equity offerings (i.e., those that only provide debt instruments), mezzanine debt is classified as a debt offering.
IPPs that have acquired land, PPA, and the relevant permits.
Grants that do not have to be paid back.
A one-time fee charged by a lender/guarantor for processing and approving a loan/guarantee application.
Where the guarantor assumes only partial risk of non-payment (usually 50%).
Taking individual responsibility as a business owner or majority owner to repay credit issued in the event the business defaults.
All owners take responsibility to repay credit issued in the event the business defaults.
Assets owned by the company, such as equipment or a building, are collateralised to secure a loan.
For IPPs, this is the ideation stage prior to the acquisition of relevant permits.
Restructuring a debt.
A form of grant financing in which funds are disbursed once recipients meet specified performance objectives.
Initial funding for a business to turn an idea into a product or service.
Debt that is paid out first when a loan is in arrears, after a loan is called into default or when a company is dissolved.
Post seed capital funding, used to ensure continued growth of the company. Series A funding is raised once a company has consistent revenue figures or other key performance indicators.
Series B funding is used to grow the company to meet rising levels of demand. Series C funding is raised once the company is almost at maturity and looking to scale or enter new markets.
A privately-owned entity that generates and sells electricity to utilities and/or end-users.
A specialised investment fund that pools resources to invest equity solely in the energy sector.
A fund set up to solely provide debt financing for the off-grid energy sector enterprises.
A large corporate investor that invests for strategic gain (e.g. to access a promising technology).
Used for loans, guarantees and insurance contracts to indicate the length of time a loan is valid until it’s due.
Third affiliated party that agrees to back a loan or debt.
Average amount of funding made available for each individual recipient.
Projects or companies that have a majority (51% or more) female ownership.
Day-to-day operational expenses.
Description
The Electrification Financing Initiative (ElectriFI) is an EU-funded specialist equity and debt financing facility for renewable energy companies active on- and off-grid in emerging markets. It has a global scope with a particular focus on specific countries across emerging markets in Africa and the Pacific.
Information
Financial instrument type
Debt
Financing entity type
Development Finance Institution (DFI), Impact Investor
Market segment(s)
Independent Power Producers
Commercial and Industrial (on-site power/heat generation)
Mini-grids
Solar Home Systems
Commercial and Industrial (on-site power/heat generation)
Mini-grids
Solar Home Systems
Geographic region(s)
Global
Sub-Saharan Africa
Pacific
(Focus countries in Sub-Saharan Africa include Benin, Burundi, Côte d'Ivoire, Eswatini, Kenya, Nigeria, Uganda and Zambia; a specific facility is also dedicated to investment in the Pacific island countries)
Sub-Saharan Africa
Pacific
(Focus countries in Sub-Saharan Africa include Benin, Burundi, Côte d'Ivoire, Eswatini, Kenya, Nigeria, Uganda and Zambia; a specific facility is also dedicated to investment in the Pacific island countries)
Countries
Benin
Burundi
Cook Islands
and 19 more
Burundi
Cook Islands
and 19 more
Côte d'Ivoire
Eswatini
Federated States of MIcronesia
Fiji
Kenya
Kiribati
Marshall Islands
Nauru
Nigeria
Niue
Palau
Papua New Guinea
Samoa
Solomon Islands
Tonga
Tuvalu
Uganda
Vanuatu
Zambia
show less
Eswatini
Federated States of MIcronesia
Fiji
Kenya
Kiribati
Marshall Islands
Nauru
Nigeria
Niue
Palau
Papua New Guinea
Samoa
Solomon Islands
Tonga
Tuvalu
Uganda
Vanuatu
Zambia
show less
Activities eligible for funding
- For off-grid enterprises:
- Working capital
- Inventory financing
- Asset-based financing (on balance sheet)
- Asset-based financing (off balance sheet through an SPV)
- Project financing
For IPPs:- Mid stage (post-PPA)
- Late stage (equity partner, pre-EPC contract + debt financing)
Currencies
Euros
US Dollars; local currencies can be considered in certain jurisdictions
US Dollars; local currencies can be considered in certain jurisdictions
Eligibility criteria
- Eligibility criteria can be found here
Applicant groups with special set-asides or additional evaluation points
- Gender lens
Application process
Technical assistance
No technical assistance is provided
Examples of successful investments
Types of loans provided
Senior debt
Junior or subordinated debt (non-convertible)
Mezzanine Debt
Junior or subordinated debt (non-convertible)
Mezzanine Debt
Range of loan tenors
Varies
Interest rate (%)
Varies
Collaterals or other securities required
- Varies (discussed during the negotiation process)
Minimum range of ticket sizes
500,000 - 1,000,000 (EUR)
Maximum range of ticket sizes
3,000,000 - 10,000,000 (EUR)
Average ticket size per transaction
1,000,000 - 3,000,000 (EUR)
Fund manager description
EDFI Management Company (EDFI MC) was established in 2016 on behalf of EDFI Association’s members. EDFI MC provides development finance solutions that enable European DFIs and private sector companies to increase the scale and impact of their investments. Through the ElectriFI and AgriFI facilities, EDFI MC provides early-stage businesses operating in developing countries with equity and long-term debt financing.
Headquarters
Brussels, Belgium
Public contact