The Facility for Energy Inclusion (“FEI”), managed by Cygnum Capital (formerly Lion’s Head Group), arranged EUR 49.9 million of additional debt from the existing lender group for Camusat’s energy services company (“ESCO”), AktivCo, in Senegal.
On July 24th, 2023, FEI, Proparco, Norfund and AfricaGoGreen (the “Lenders”) signed agreements to provide EUR 49.9m of additional debt to AktivCo for the expansion into Senegal. FEI acted as lead arranger. This additional debt package is a sign of the Lenders’ commitment to support AktivCo’s expansion strategy in Africa.
“We are satisfied with the signing of this new facility supporting the successful deployment and management of the ESCO project that we have been awarded recently in Senegal. This fruitful partnership with our lenders is a fundamental building block for the development of our Group, and in particular for our InfraCo Division, AktivCo. I want to express my gratitude and appreciation to our lenders for their constant support and confidence in our capacity to accomplish our mission to reshape the telecom infrastructures into sustainable business models, and become a net contributor to the fight against climate change. At the same time, congratulations to our financial team for their dedication to and the hard work invested in this project, and thus in the development of AktivCo.” said Richard Thomas, CEO of Camusat Group.
“This new transaction between AktivCo and the Lenders shows the long-term commitment of the Lenders to support its clients and the ability of the FEI team to arrange debt in a timely manner. This new milestone also demonstrates the financial robustness of the ESCO model”, said Orli Arav, Head of Debt Funds at Cygnum Capital Asset Management.
“Proparco has been supporting AktivCo since 2021 and is proud to deepen this long-term partnership with them. AktivCo has succeeded in extending its footprint in Africa with this new project in Senegal – confirming their position as a key player in the ESCO sector. This new expansion will further improve the impact of AktivCo and the Lenders on mobile coverage,digital inclusion, and carbon emission reduction,” said Pierre-Alain Pacaud, Head of Power & Digital – Africa and Middle East at Proparco.
“Together with our partners, Norfund has actively supported AktivCosince 2021 and we congratulate Aktivco on expanding their business model to Senegal. Norfund is proud to support the Company’s continued focus on decarbonizing power supply under a demonstrated ESCO model by providing clean and reliable energy services to telecommunication infrastructure in sub-Saharan Africa”, said Anders Bloom, Senior Vice President Renewable Energy at Norfund.
About Camusat andAktivCo
AktivCo, InfraCo Division of Camusat Group, structures and finances complex outsourcing transactions to transform the telecom infrastructures into sustainable business models, thus enabling the decarbonization of telco networks. With a presence in 8 countries in Africa and Europe and with EUR +175 million investment in its 7,000 TESCO(*) sites by end of 2023, AktivCo is a key Infra as a Service player in the telecom world. With a strong focus on energy efficiency management through the integration of green smart solutions into its pioneering ESCO, SaaS and TWESCO (**) business models, AktivCo creates long-term sustainable financial and network performance for its customers, reshapes the telecom world for cleaner communications and access to technology, and promotes inclusive local development of the communities.
(*) TESCO =Telecom Energy Service Company
(**) ESCO = Energyas a Service, SaaS = Solar as a Service, TWESCO = Tower & Energy as aService
About Cygnum Capital (formerly Lion’s Head Group)
Cygnum Capital Group is an investment bank and asset manager operating across frontier and emerging markets. Formerly known as Lion’s Head, which was founded in 2008, Cygnum Capital is now a global provider of tailored and innovative financial solutions to meet its clients’ diverse needs.
Cygnum Capital uses long-term relationships, networks and local market understanding to deliver a best-in-class service. With offices in London,Nairobi, Lagos, Dubai, and Amsterdam, Cygnum Capital’s dynamic team of 70 finance professionals provide deep sectoral expertise, a broad product offering, an asset management platform and the ability to leverage synergies between our corporate finance, asset management and advisory activities.
Cygnum Capital Asset Management manages five pioneering funds: four debt funds including: (i) the African Local Currency Bond Fund (“ALCBF”), aground-breaking investment vehicle established to support local currency capital markets, (ii) Off-Grid Energy Access Fund (“OGEF”) which supports companies in off grid energy such as SHS and small- medium mini-grids,(iii) Facility for Energy Inclusion (“FEI”) which support companies that provide a range of renewable energy solutions such as medium - large mini- grids,C&I and IPP with a maximum capacity of 25 MW, (iv) AfricaGoGreen (“AGG”) Fund which supports companies combating climate change by reducing the use of fossil fuels through new technologies and that increase energy efficiency; and a VC private equity fund (v) E3 Low Carbon Economy Fund for Africa (“E3 LCEF”) which invests in climate-smart services, digital connectivity & Applications,low-carbon productivity enablers. Cygnum Capital Asset Management has over USD 750 million of assets under management with investments in more than 34 African countries.
About the Facility for Energy Inclusion
FEI is designed to support small-scale independent power producers delivering power to the grid, mini-grids, commercial and industrial and captive power projects. FEI was set up by the African Development Bank as part of its New Deal for Africa initiative. In addition to the investment by the AfDB, FEI received equity funding from the German Federal Ministry for Economic Cooperation and Development through KfW and Norfund, and a loan commitment from the Austrian Development Bank. The AfDB also invested on behalf of the Clean Technology Fund and the European Commission.
About Africa Go Green
AGG is designed to support activities that mitigate GHG emissions in Africa. The fund provides debt financing to businesses and projects across the spaces of industrial energy efficiency, green buildings, clean transport, andgreen appliances. AGG was established by KfW and has received funding commitments from the German Federal Ministry for Economic Cooperation and Development (“BMZ”) through KfW in addition to funding commitments from the African Development Bank, NDF, SEFA, Calvert Impact Capital, and the International Finance Corporation.
Proparco, a subsidiary of Agence Française de Développement Group, has been working with the private sector for over 45 years for a more just and sustainable world. With an international network of 23 local offices, Proparco works closely with its partners to build sustainable solutions in response to environmental and social challenges in Africa, the Middle East, Asia and Latin America. Proparco benefits from sector-based expertise as well as a wide range of financial solutions tailored to the different stages of business development, notably thanks to its Digital Africa subsidiary, and its Propulse technical assistance offering designed to scale up the impacts and performance of its partners.
Proparco's new "Acting together for greater impact” Strategy 2023-2027 enables,strengthens and amplifies the different ways in which it works with its partners. To learn more: http://www.proparco.fr/en/strategy.
For more information, goto http://www.proparco.fr/en and @Proparco LinkedIn
Norfund is the Norwegian Investment Fund for developing countries. The mission is to create jobs and to improve lives by investing in businesses that drive sustainable development. Norfund is owned and funded by the Norwegian Government and is the Government ́s most important tool for strengthening the private sector in developing countries to reduce poverty. Norfund’s committed portfolio totals US$3.1 billion with direct and indirect investments in sub-Saharan Africa, Southeast Asia and Central America.
Learn more at www.norfund.no.
The Lenders were advised by Trinity LLP (legal), Afry (technical), and Ibis Consulting (E&S).