REPP's products and support
Development phase capital and support
REPP provides loans for selected third party development expenses, such as feasibility studies, grid studies, environmental and social impact assessments, legal advice etc. The programme also offers developers general project guidance and support.act.
REPP helps to bring projects to financial close using a range of financing structures, including bridge financing, construction loans, equity and equity conversion options, results-based financing, results-based loans for mini-grid rollout, subordinated debt, trade finance for SHS, and working capital loans.
Access to risk mitigation instruments
Instruments are provided by REPP’s partners with the programme’s assistance and coordination, and focus on risks that cannot be cost-effectively managed by the private sector, especially political, regulatory and offtaker risks. REPP also works to reduce risk in the long-term by collaborating with governments on regulatory improvement and demonstrating how regulatory stability can attract more investment leading to greater social benefit.
Access to long-term lending
The REPP team uses its wealth of experience and contacts in renewable energy finance across Africa to help projects to structure their funding in the right way, and to secure finance from REPP partners and other financial institutions, both private and public. REPP also encourages debt and risk mitigation instrument providers to coordinate their approval and due diligence requirements to simplify the process for developers.
Origination & eligibility
The REPP manager discusses project proposal with developer and an eligibility assessment is performed, potentially leading to a signed engagement letter.
REPP project teams decide whether to progress application to REPP’s Investment Committee (IC) via a concept memo. If it does, a full proposal document is prepared and presented for a Q&A session.
Ongoing support & monitoring
The REPP project team provides ongoing support on an as-needed basis and collects information for monitoring and evaluation purposes.
KYC and due diligence is started, and a draft financing agreement is prepared and agreed alongside a set of condition precedents. If the draft gets passed by the IC, it goes to the Management Board for final decision. Once condition precedents are met, the funds are disbursed as per the agreed milestones.
If IC recommends progression, a draft term sheet is agreed with the developer and presented with a full structure memo to the IC.