Green FIDC Origo (IDBI-12680-01)

Countries
  • Brazil
Where the impacts of the investment may be experienced.
Financial Institutions
  • IDB Invest
International, regional and national development finance institutions. Many of these banks have a public interest mission, such as poverty reduction.
Project Status
Proposed
Bank Risk Rating
FI
Risk rating varies among banks and may refer only to the particular investment and not to the risk for the project as a whole. Projects marked 'U' have an 'Unknown' risk rating at the time of disclosure.
Borrower
Ebes Sistemas De Energia S.A
The holder of the loan, grant, or other investment.
Investment Amount (USD)
Not Disclosed
When disclosed, the bank did not provide this value. Please review updated project documents for more information.
Primary Source

Original disclosure @ IDBI website

Updated in EWS Jun 28, 2019


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Project Description

The project consists of a senior and/or mezzanine quota subscription of up to BRL40 million in Brazilian Real. The quotas will be issued by Green FIDC Origo, a receivable rights fund to be organized in accordance with the Brazilian laws and regulations.The fund was designed to disintermediate the access to Brazilian capital markets for renewable energy projects - reducing the cost of capital and facilitating long-term financing. The fund will purchase the receivables of long-term financing contracts of solar-rooftop systems originated by Origo.IDB Invest will provide conditions that are not available from commercial sources to help Origo develop a new product and business model to promote energy efficiency, financing access and support capital market development in Brazil. The proposed project will be approved under the following IDB Invest delegated facility: "Debt Capital Markets Program".IDB Invest will provide technical assistance to design a framework that defines the selection, monitoring and evaluation of the receivable portfolio in a manner aligned with the Sustainable Development Goals ("SDG") defined in the framework of the United Nations Development Program so that the issuance is cataloged as green.

People Affected By This Project

1. Scope of Environmental and Social Review. The environmental and social review of the proposed transaction was carried out through desk research, client meetings, and a review of the investment portfolio of rooftop solar projects. Origo is a specialized installer of residential rooftop solar facilities. Through IDB's investment in this Green FIDC, IDB Invest is supporting the securitization of receivables stemming through the sales of solar rooftop equipment to Brazilian residential customers by Origo. As this operation is executed via a Fund for the purchase of credit rights, it is classified as a financial intermediary (FI).2. Environmental and Social Categorization and Rationale. The proposed operation is classified as an FI-3 per IDB Invest's Sustainability Policy. Transactions under the fund support the installation of small-scale residential solar projects. Individual transaction investments range from roughly US$7,000 to US$25,000.3. Environmental and Social (E&S) Risks and Impacts. The main E&S risks of this transaction are associated with the Origo's capacity to identify and manage for E&S risks related to rooftop installation. The primary risks entail basic Occupational, Health and Safety (OHS) concerns associated with the installation and initial operation of the solar equipment. There is no environmental risk; scrap material, which is limited, is taken off site following installation and treated in accordance with local law.4. Mitigation Measures. Origo has a well-established Occupational Health and Safety Manual, which they educate and train all workers (currently 10-15). The manual sets out good practice procedure in rooftop installation and possible OHS risks. The company has built its reputation on the quality and care of installation. The company engages two third party installers. These installation companies are required to adopt Origo's OHS standards and all staff receive the same training as if they were direct employees. Quality control and site inspections to observe possible OHS infractions are carried out periodically. IDB Invest's assessment indicated that Origo is in compliance with the IIC Sustainability Policy in form and substance commensurate with the risk associated with an FI-3.5. Environmental and Social Action Plan No action plan is required.

Investment Description
  • IDB Invest
Contact Information

Contact name: Osvaldo Antunes Cruz Junior
Title: Diretor Executivo
Phone number: (19) 3517-7421
Email address:
osvaldo.cruz@origoenergia.com.br