The First Fund finances small renewable energy projects in South Africa, smoothing out the hurdles these projects typically face when trying to attract funding.
It was established by RMB in partnership with KfW Development Bank in December 2017, aiming to assist new entrants that lack the track record or balance sheet support required from commercial banks.
As the sole commercial bank, RMB contributed R1 billion to the establishment of the fund, which simplifies the credit assessment and due diligence process for these projects.
It is expected that private power plants will find First a useful funding partner, enabling projects that might otherwise not meet board approval as corporate capital projects and allowing independent developers to achieve a suitable equity return.
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