SIMA COMMERCIAL & INDUSTRIAL SOLAR GREEN BOND B.V. (IFC-47834)

Regions
  • Africa
Geographic location where the impacts of the investment may be experienced.
Financial Institutions
  • International Finance Corporation (IFC)
International, regional and national development finance institutions. Many of these banks have a public interest mission, such as poverty reduction.
Project Status
Approved
Stage of the project cycle. Stages vary by development bank and can include: pending, approval, implementation, and closed or completed.
Bank Risk Rating
B
Environmental and social categorization assessed by the development bank as a measure of the planned project’s environmental and social impacts. A higher risk rating may require more due diligence to limit or avoid harm to people and the environment. For example, "A" or "B" are risk categories where "A" represents the highest amount of risk. Results will include projects that specifically recorded a rating, all other projects are marked ‘U’ for "Undisclosed."
Voting Date
Dec 20, 2023
Date when project documentation and funding is reviewed by the Board for consideration and approval. Some development banks will state a "board date" or "decision date." When funding approval is obtained, the legal documents are accepted and signed, the implementation phase begins.
Borrower
SOCIAL INVESTMENT MANAGERS AND ADVISORS LLC (SIMA)
A public entity (government or state-owned) provided with funds or financial support to manage and/or implement a project.
Sectors
  • Energy
  • Finance
The service or industry focus of the investment. A project can have several sectors.
Investment Type(s)
Fund
The categories of the bank investment: loan, grant, guarantee, technical assistance, advisory services, equity and fund.
Investment Amount (USD)
$ 48.00 million
Value listed on project documents at time of disclosure. If necessary, this amount is converted to USD ($) on the date of disclosure. Please review updated project documents for more information.
Project Cost (USD)
$ 150.00 million
Value listed on project documents at time of disclosure. If necessary, this amount is converted to USD ($) on the date of disclosure. Please review updated project documents for more information.
Other Related Projects
Primary Source

Original disclosure @ IFC website

Updated in EWS Nov 27, 2024

Disclosed by Bank Aug 30, 2023

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Project Description
If provided by the financial institution, the Early Warning System Team writes a short summary describing the purported development objective of the project and project components. Review the complete project documentation for a detailed description.

According to the Bank’s website, SIMA Commercial & Industrial Solar Green Bond B.V (SIMA Solar Bond or the Fund) is a structured bond fund that will finance small-scale productive-use solar projects within the commercial and small industrial (C&I) sectors throughout Africa. The Fund will have a target size of US$150 million, a maturity of 10 years, and will provide both shorter-term corporate loans as well as longer-term project finance. The SIMA Solar Bond structure contains multiple tranches, including a catalytic tranche, followed by junior, senior, and super senior tranches. IFC will act as an anchor investor by investing in up to 35% of the Bond (the Project). The Project is expected to be supported by IDA20 Private Sector Window (PSW) Blended Finance Facility (BFF) and IFC-Global Energy Alliance for People and Planet (GEAPP) as described in the Blended Finance Section. 

Early Warning System Project Analysis
For a project with severe or irreversible impacts to local community and natural resources, the Early Warning System Team may conduct a thorough analysis regarding its potential impacts to human and environmental rights.

The IFC categorized the project risk as FI-2.

Investment Description
Here you can find a list of individual development financial institutions that finance the project.
Financial Intermediary
A financial intermediary is a bank or financial institution that receives funds from a development bank. A financial intermediary then lends these funds to their clients (private actors) in the form of loans, bonds, guarantees and equity shares. Financial intermediaries include insurance, pension and equity funds. The direct financial relationship is between the development bank and the financial intermediary.
Private Actors Description
A Private Actor is a non-governmental body or entity that is the borrower or client of a development project, which can include corporations, private equity and banks. This describes the private actors and their roles in relation to the project, when private actor information is disclosed or has been further researched.

As stated by the IFC, the Fund will be wholly owned by Stichting Impact Investment Foundation (SIIF) and managed by Social Investment Managers and Advisors LLC (SIMA or Fund Manager), which was founded in 2015 by Asad Mahmood and Michael Rauenhorst (together, the Sponsors). As a foundation, SIIF does not have shareholders, rather it is represented by board members, including two executive directors (Mr. Mahmood and Mr. Rauenhorst) and independent directors. The Sponsors have a history of investing over US$2 billion through 18 funds in more than 50 countries before founding SIMA.

SIMA has four lines of business, including (i) asset management; (ii) advisory; (iii) social businesses; and (iv) philanthropic services. The Fund Manager has grown to 45 employees across 7 countries and currently manages three impact funds focused on the renewable energy sector in emerging markets, having invested US$185+ million. SIMA is registered with the SEC and has been recognized by Impact Assets as a top 50 fund manager for two consecutive years (2021 and 2022).


Contact Information
This section aims to support the local communities and local CSO to get to know which stakeholders are involved in a project with their roles and responsibilities. If available, there may be a complaint office for the respective bank which operates independently to receive and determine violations in policy and practice. Independent Accountability Mechanisms receive and respond to complaints. Most Independent Accountability Mechanisms offer two functions for addressing complaints: dispute resolution and compliance review.

Social Investment Managers and Advisors LLC
Vinay Kumar Bandaru
Senior Vice President
+ 230 55180334
vinay@simafunds.com
157 Columbus Ave, Suite 512, New York, NY 10023
https://simafunds.com/

ACCESS TO INFORMATION

You can submit a request for information disclosure at: https://disclosures.ifc.org/#/inquiries

If you believe that your request for information from IFC has been unreasonably denied, or that this Policy has been interpreted incorrectly, you can submit a complaint at the link above to IFC's Access to Information Policy Advisor, who reports directly to IFC's Executive Vice President.

ACCOUNTABILITY MECHANISM OF IFC/MIGA

The Compliance Advisor Ombudsman (CAO) is the independent complaint mechanism and fact-finding body for people who believe they are likely to be, or have been, adversely affected by an IFC or MIGA- financed project. If you submit a complaint to the CAO, they may assist you in resolving a dispute with the company and/or investigate to assess whether the IFC is following its own policies and procedures for preventing harm to people or the environment. If you want to submit a complaint electronically, you can email the CAO at CAO@worldbankgroup.org You can learn more about the CAO and how to file a complaint at http://www.cao-ombudsman.org

How it works

How it works