FEI is a financing platform spearheaded by the African Development Bank, Norfund and partners to catalyze financial support for innovative energy access solutions.
The facility (FEI) is a new Debt Fund for small-scale renewable energy in Africa. The aim is to contribute to the electrification of Africa.
We look forward to seeing FEI catalyze financing for new energy sector business models and accelerate our efforts to electrify Africa!Wale Shonibare, Acting Vice-President of the Power, Energy, Climate & Green Growth Complex at the African Development Bank
The Facility is designed to support small-scale Independent Power Producers (IPPs) delivering power to the grid, mini-grids and captive power projects. Priority will be given to projects in Sub-Saharan countries with lower electricity access rates.
Providing various debt products
The Facility provides various debt products including corporate and project loans, construction/bridge loans and mezzanine finance, in both hard and local currencies. Eligible investments are projects using renewable energy technology with capital expenditures of less than US$ 30 million and a capacity below 25MW.
FEI is managed by Lion’s Head Global Partners Asset Management, a fund manager focused on bringing innovative financial solutions to emerging markets and selected through an international competitive process.
Norfund has committed USD 23 million in FEI, of which USD 20 million as ordinary equity and USD 3 million as a junior equity tranche.
Norfund is pleased to participate in this new facility which makes debt financing available to smaller scale renewable power projects in Africa. We anticipate that the facility will be successful in attracting private capital to this segment of the marketMark Davis, Executive Vice President Clean Energy, Norfund