SIMA Off-Grid Solar and Financial Access Senior Debt Fund I B.V.
SIMA’s first fund is one of the largest funds in the off-grid solar sector at US $90 million. This is a five-year fund that provides senior debt financing to innovative companies that finance, manufacture, and/or distribute individual solar home systems, commercial and industrial solar or minigrids in sub-Saharan Africa and South Asia. 1.2 billion people around the world do not have access to electricity and are forced to burn fossil fuels which are extremely harmful to a person’s health, inefficient and expensive, and devastating to the environment.
Milestones To Date
Investment
$90 million placed in 23 off-grid solar companies and microfinance institutions providing energy access for the bottom of the pyramid in 13 countries.
Fundraising
$90 million raised from institutional investors, impact investors, foundations, family offices and development finance institutions.
Environment
Estimated 5.8 million tons of CO2 emissions avoided to date by portfolio companies
Outreach
3.2 million off-grid solar products were sold in 2018 by portfolio companies. 6,275 people employed by our portfolio companies, 30% are women
Our Portfolio
The Fund I invests across the off-grid solar value chain to manufacturers, distributors, and financiers of off-grid solar home and small business systems. We deploy capital through a variety of senior debt instruments (working capital, inventory finance, receivables finance, distributor finance) and in local currency, when possible.
Our Investors
We offer short term (4 years or less) fixed income opportunities across 5 different risk/return profiles. The Fund’s 30+ investors include pension funds, development banks, foundations, private individuals, and insurance companies.
ESG and Social Performance
The foundation of our social performance framework is the establishment of individualized social goals for each company based on their business strategy and social intent. Once the social goals are mutually agreed to, the business is held accountable though social covenants that are part of the legal agreements. We conduct on-site ESG checks and require that all borrowers do not engage in any activities defined by the IFC Exclusion List