The International Finance Corporation (IFC), a member of the World Bank Group, has proposed to invest $13 million in an equity-cum-debt financing in Yoma Micro Power, a Myanmar-focused owner and operator of micro power plants and mini grids, according to its disclosure on June 6.
Yoma Micro Power is planning to use solar-hybrid distributed generation units to support rural communities in remote areas.
IFC has proposed that its financing will comprise $7 million in equity through its InfraVentures arm and $6 million as concessional loan in its capacity as implementing entity of the Canada Climate Change Program.
This forms part of $28-million investment Yoma Micro Power will be receiving for its project of building micro-power plants and mini grids.
In April, Yoma Micro Power announced the project which aims to provide clean energy using solar-based electrification.
“Due to the rapid reduction in the cost of solar panels and batteries, solar-powered mini-grids have emerged as a viable alternative for rural electrification which can be deployed rapidly and financed with private capital,” said Alakesh Chetia, founder and CEO of Yoma Micro Power during the press conference in April this year.
While Yoma Strategic Holdings has put $8 million equity (35 per cent), IFC and Norway’s Norfund will contribute $7 million each. Both IFC and Norfund will hence own 30 per cent stake each in the project. The project will receive $6 million as debt from the Government of Canada. Alakesh Chetia, founder and CEO of Yoma Micro Power holds the remaining 5 percent stake.
Prior to the latest financing, Norfund has contributed a $2 million initial investment in Yoma Micro Power which was established in 2017.