IGNITE HOLDING COMPANY INC. (FMO-48657)

Countries
  • Guatemala
Where the impacts of the investment may be experienced.
Financial Institutions
  • Netherlands Development Finance Company (FMO)
International, regional and national development finance institutions. Many of these banks have a public interest mission, such as poverty reduction.
Project Status
Approved
Bank Risk Rating
U
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.
Voting Date
Mar 24, 2016
The estimate day the bank will vote on a proposed investment. The decision dates may change, so review updated project documents or contact the EWS team.
Borrower
Ignite Holding (Kingo)
The holder of the loan, grant, or other investment.
Sectors
  • Energy
The service or industry focus of the investment. A project can have several sectors.
Investment Type(s)
Grant
The categories of the bank investment: loan, grant, etc.
Investment Amount (USD)
$ 2.00 million
Value listed on project documents at time of disclosure. If necessary, converted to USD$. Please review updated project documents for more information.
Project Cost (USD)
$ 14.00 million
Value listed on project documents at time of disclosure. If necessary, converted to USD$. Please see updated project documentation for more information.
Primary Source

Original disclosure @ FMO website

Updated in EWS Jun 26, 2018


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Project Description

FROM FMO:

WHO IS OUR CLIENT

Kingo, trade name for Ignite Holding Company, Inc. is the first commercial venture in Central America for rolling out off-grid prepaid energy solutions for households. Kingo positions itself as a utility-like provider of electricity to rural off-grid communities .The company's business model consists in installing home solar systems which remain the company's property and distributing prepaid energy credit through local distributors (shop keepers) that customers can purchase according to their budget and their energy needs.

FUNDING OBJECTIVE

The objective of the grant is to allow Kingo to continue expansion in the market and be able to show significant growth on solid/validated business model to support the equity raise contemplated at the end of 2016. The proceeds of funds is mainly used to fund the kits themselves and installation/maintenance activities.

WHY WE FUND THIS PROJECT

Ignite provides first time energy access to households via solar home systems in rural areas without a grid connection. Moreover, the energy access contributes to productivity of households and ultimately to economic growth (proper lighting and charging facilities allow work and study activity beyond sunset).

Investment Description
  • Netherlands Development Finance Company (FMO)

The financing comes in the form of a USD 2 million convertible grant to Kingo, in addition to the USD 12 million equity raise through series B contemplated at the end of 2016.

Contact Information

FMO
The Netherlands
+31 70 314 96 96
info@fmo.nl

ACCOUNTABILITY MECHANISM OF FMO

Communities who believe they will be negatively affected by a project funded by the Dutch Development Bank (FMO) may be able to file a complaint with the Independent Complaints Mechanism, which is the joint independent accountability mechanism of the Dutch Development Bank (FMO) and the German Investment Corporation (KfW) . A complaint can be filed in writing, by email, post, or online. The complaint can be filed in English or any other language of the complainant. The Independent Complaints Mechanism is comprised of a three-member Independent Expert Panel and it can provide either problem-solving, compliance review or both, in either order. Additional information about this accountability mechanism, including a guide and template for filing a complaint, can be found at: https://www.fmo.nl/independent-complaints-mechanism