AFD Green Energy Fund

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AFD GREEN ENERGY

FUND

OBJECTIVES

AFD Green Energy Fund provides finance to renewable energy and energy efficiency projects of smaller scale and manufacturing of Green products in South Africa.

Qualifying Criteria

  • Renewable Energy (RE):
    • Solar and biomass; and
    • Other technologies are considered on a case by case basis.
  • Energy Efficiency (EE):
    • A maximum of 200% increase in production capacity is allowed for expansion projects; and
    • Greenfield operations are considered on a case by case basis.
  • AFD funds are blended at a leverage level of at most 50% funding from IDC; and
  • No refinancing.

Instruments and Pricing

  • Total investment cost not higher that 25% of the Facility (ca R250 million per project);
  • Normal risk pricing with a cap of Prime + 1.6% or an equivalent fixed rate;
  • Minimum investment period of 3 years;
  • Maximum payback based on energy savings of 8 years; and
  • Standard IDC fees apply.

OTHER

SCHEMES