The challenge
Securing finance in the renewable energy sector is problematic for smaller companies as sponsor track records, small sponsor balance sheets and high due diligence costs are not easily accessible.
The RMB solution
In December 2017, RMB partnered with KfW Development Bank, a German state-owned development bank, to establish the FIRST Fund. This fund is leveraged and structured to improve the risk-return dynamics of a portfolio of smaller scale projects, which helps attract more commercial bank interest for renewable projects.
RMB contributed R1-bn and KfW Development Bank, contributed R300-m to set the fund up, simplifying the credit assessment and due diligence process smaller companies have to go through to fund their renewable energy projects.
No other commercial bank was able to fund this project for the entire sector.
Proven results
This project has simplified access to funds for smaller renewable energy in South Africa – ranging from corporates and factories to shopping malls.
| Client |
|
|---|---|
| Deal value | R1-bn |
| Sector | Infrastructure and Renewables |
| Capability | Infrastructure Finance |
| Result | Easy access to finance for small renewable energy projects, resulting in a cleaner, greener corporate South Africa. |
FIRST Fund