COVID-19 financial support
Like in many other sectors, we recognise that renewable energy companies have been badly impacted by the current crisis. COVID-19 has affected all areas of our society, and alongside the financial hardship faced by many companies, we understand that social, economic and gender inequalities have also intensified in many areas.
To help ease the economic burden and ensure that operations continue, REPP is making financial support available for companies and projects that fit within our general mandate. This includes:
- A 3-month interest and repayment moratorium for existing investees; and
- a COVID-19 working capital facility.
REPP COVID-19 Working Capital Facility
Applications from existing REPP investees will be assessed against our broader understanding of the investee’s need.
Applications from entities that are not currently REPP investees will be assessed for need and against REPP’s normal eligibility and decision-making criteria.
All applications will be fast tracked, but if your business is not already a REPP investee, we expect the approval process to take a month or two.
Although each facility will be tailored to specific circumstances, the general terms of the working capital facility include:
- Borrower: For projects in development, the project company. For off-grid companies, the main operating company.
- Purpose: To cover local (in-country) operating costs. No dividends, shareholder loan repayments, prepayment of any element of existing loans, bonuses, investment outside REPP mandate countries or new market expansion will be permitted with loan proceeds.
- Amount: Up to 12 months’ historical operating expenditure (excluding inventory).
- Tenor: Up to 3 years with a 12-month principal grace period and a 6-month interest grace period.
- Security: Unsecured.
- Mandatory prepayment within 6 months if:
- Net cash flow from financing is less than zero or more than 5x the working capital loan amount;
- The ratio of in-country staff expenses over cash revenue is less than 80% of the 2019 average;
- Revenue over any 6-month period while the loan is on foot is greater than 80% of 2019 revenue divided by two;
- The ratio of females as a percentage of in-country staff declines by more than 10% points relative to 2019 average.
- Documentation: Standard terms and conditions provided by REPP.
Applicants will be required to provide information to demonstrate that:
- Their business and/or business plan would have been viable but for COVID-19 impact;
- They have a reasonably prudent financial position and management;
- They have a coherent plan as to how to deal with COVID-19.
How to apply
The CEO or CFO of businesses that wish to apply can do so here. (Please note that the application form works better in browsers other than Google Chrome.)
REPP reserves the right not to approve any application.
If this working capital loan does not suit your circumstances, we will be happy to consider you for other forms of REPP support, which are summarised here.
More information on REPP general criteria and policies: