Funding Database
Universal Green Energy Access Programme (UGEAP)
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 UGEAP is a 15-year blended finance fund, targeting a size of $280mn, with a goal of reaching a maximum of $500 mm over several years, that aims to contribute toward the transition to sustainable energy generation in Africa. UGEAP’s anchor investment has been provided by the UN Green Climate Fund, with DWS Investment SA acting as the Investment Manager to UGEAP. The Fund aims to support the debt financing needs of the renewable energy sector in sub-Saharan Africa, primarily servicing off- and select on-grid populations and businesses. The Fund provides debt financing through and along financial intermediaries to the benefit of commercial businesses or projects that develop, build and/or operate renewable energy installations, provide clean energy access to households and businesses, or provide ancillary services in the energy supply chain and that are serving markets in Sub-Saharan Africa.
Information
Financial instrument type
Debt
Financing entity type
Alternative Investment Fund Manager
Market segment(s)
Independent Power Producers
Commercial and Industrial (on-site power/heat generation)
Mini-grids
Solar Home Systems
Other: Agri-productive use; Energy Efficiency; Battery Storage; Hydro, Wind and Geothermal Energy Solutions
Commercial and Industrial (on-site power/heat generation)
Mini-grids
Solar Home Systems
Other: Agri-productive use; Energy Efficiency; Battery Storage; Hydro, Wind and Geothermal Energy Solutions
Geographic region(s)
Sub-Saharan Africa
Countries
Activities eligible for funding
- Working capital
- Inventory financing
- Asset-based financing (on balance sheet)
- Project financing
Currencies
Euros
US Dollars; National currencies
US Dollars; National currencies
Eligibility criteria
- Eligibility depends on the AIFM’s assessment of creditworthiness, social + environmental compliance and development impact of prospective investee
Applicant groups with special set-asides or additional evaluation points
- None
Application process
- Application document requirements are unspecified
- Application may be submitted via email: ugeap.portfolio@db.com
Technical assistance
Technical assistance is provided for free
Types of loans provided
Senior debt
Junior or subordinated debt (non-convertible)
Junior or subordinated debt (non-convertible)
Range of loan tenors
up to 10 years, average is 5 years
Interest rate (%)
Varies
Collaterals or other securities required
- Depending on the risk profile of the borrower / transaction, a personal guarantee of the majority owner, receivables, installed equipment, shares in the borrowers’ company or real property assets may, but do not necessarily have to be pledged against the loan
Minimum range of ticket sizes
3,000,000 (EUR)
Maximum range of ticket sizes
20,000,000 – 25,000,000 (EUR)
Average ticket size per transaction
10,000,000-15,000,000 (EUR)
Fund manager description
DWS Group with EUR 859bn of assets under management (as of 30 June 2023) aspires to be one of the world's leading asset managers. Building on more than 60 years of experience, it has a reputation for excellence in Germany, Europe, the Americas and Asia. DWS is recognized by clients globally as a trusted source for integrated investment solutions, stability and innovation across a full spectrum of investment disciplines.
Headquarters
Frankfurt, Germany
Other branches
Berlin, Germany; Amsterdam, the Netherlands; Milan, Italy; Paris, France; Vienna, Austria; Stockholm, Sweden; New York, USA; San Francisco, USA; Hong Kong, China; Sydney, Australia
Public contact