Transaction

BioLite - Africa Go Green Senior Debt Facility (Zambia clean cooking, Article 6.2)

Terms

Project developer: BioLite
Recipient type: Technology company
Country: Zambia
Capital providers: Capital providers and the amount counted for each
Party Role Amount Basis
Africa Go Green Fund Lender US$10.7m Sole provider: the whole transaction

Capital providers and the amount counted for each
Party	Role	Amount	Basis
Africa Go Green Fund	Lender	US$10.7m	Sole provider: the whole transaction

Pathway: Cookstoves
Project type as recorded: At least 163,500 improved cookstoves across Zambia, repaid from carbon revenues; Article 6.2 ITMOs sold to KliK Foundation under a MOPA (Zambia-Switzerland bilateral)
Backed by offtakes from: KliK Foundation

Insurance type: Political; Delivery
Insurance provider: CFC Underwriting (insurer); Kita (intermediary, Lloyd's coverholder; capacity Chaucer, Munich Re Specialty, RenaissanceRe, Tokio Marine Kiln, MS Amlin); Texel (broker)

: Africa Go Green (AGG), the climate-focused debt fund managed by Cygnum Capital, provided a USD 10.7m Senior Debt Facility to BioLite to finance the purchase and distribution of at least 163,500 improved cookstoves across Zambia. The facility is repaid from future carbon revenues - a project-finance / bankable-asset structure rather than grant/equity/pre-purchase. Demand anchor: KliK Foundation (Switzerland) will buy the project's ITMOs from BioLite under a Mitigation Outcomes Purchase Agreement (MOPA), implemented under the Article 6.2 bilateral agreement between Zambia and Switzerland. Credit type: clean-cookstove emission reductions (Article 6.2 ITMOs). Insurance overlay from CFC Underwriting and Kita, brokered by Texel. Hunton advised AGG as lender's international counsel (partner Ferdinand Calice). Source: https://www.cygnumcapital.com/news/africa-go-green-backs-biolites-clean-cooking-rollout-in-zambia-under-article-6-2-of-the-paris-agreement

: US$10.7m senior debt facility from Africa Go Green, managed by Cygnum Capital, with repayment from future carbon credit revenue under an offtake from KliK Foundation and with corresponding adjustments from the Zambian government. Political risk and carbon delivery insurance from CFC.

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