IFC, a member of the World Bank Group, in partnership with Social Investment Managers and Advisors LLC (SIMA Funds or SIMA) and other financiers, reached the first close of a $150 million green bond to finance productive-use solar projects across Sub-Saharan Africa.
The bond will focus on funding hard-to-reach small and medium-sized enterprises (SMEs) and is one of the most significant impact-driven funds focused exclusively on smaller businesses. Short-term corporate financing and project financing of up to 10 years will be offered to support the growth of small and medium-sized local developers for individual projects less than 5 megawatts (MW). The areas in focus centered around the productive uses of energy will include manufacturing, services, education, healthcare, and agri-processing.
IFC’s contribution of $45 million includes a $25 million IFC own-account loan and subordinated loans of $11 million from the Finland-IFC Blended Finance for Climate Program and $9 million from GEAPP.