The project consists of a senior and/or mezzanine quota subscription of up to BRL40 million in Brazilian Real including a Blended Finance participation through the UK Sustainable Infrastructure Program. The quotas will be issued by Green FIDC Órigo, a receivable rights fund to be organized in accordance with the Brazilian laws and regulations.
The fund was designed to disintermediate the access to Brazilian capital markets for renewable energy projects - reducing the cost of capital and facilitating long-term financing. The fund will purchase the receivables of long-term financing contracts of solar-rooftop systems originated by Órigo.
IDB Invest will provide conditions that are not available from commercial sources to help Órigo develop a new product and business model to promote energy efficiency, financing access and support capital market development in Brazil. The proposed project will be approved under the following IDB Invest delegated facility: “Debt Capital Markets Program”.
IDB Invest will provide technical assistance to design a framework that defines the selection, monitoring and evaluation of the receivable portfolio in a manner aligned with the Sustainable Development Goals ("SDG") defined in the framework of the United Nations Development Program so that the issuance is cataloged as green.