32417 - Flexenclosure

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Summary of Investment Information

Project Number

32417

Company Name

FLEXENCLOSURE AB

Date SPI Disclosed

Jan 7, 2013

Country

Africa Region

Region

Africa

Projected Board Date

Feb 7, 2013

Environmental Category

C - No Impact

Status

Completed

Last Updated Date

Sep 30, 2022

Department

TMT, Venture Capital & Funds

Industry

Telecommunications and Technology

Previous Events

Approved : May 1, 2013
Signed : May 24, 2013
Invested : Jun 5, 2013

Sector

Other (Including Satellite Telecommunications, Radio and Television Broadcasting, etc.)

Project Description

Flexenclosure AB (“Flexenclosure”, or “the Company”) is a specialist supplier of intelligent power management systems and prefabricated data centres for the ICT industry. The company provides systems that are fully integrated, modular, factory tested for reliability, adaptable to local conditions and quick to install.
eSite (http://www.flexenclosure.com/esite) is a portfolio of energy-efficient hybrid power systems for base station sites in areas where grid power is unreliable or unavailable. eSite can deliver a 90% reduction in diesel fuel consumption, CO2 emissions and energy related OPEX compared to traditional diesel based systems. Fully integrated into eSite is eManager, a one-stop interface for remote management and energy optimisation of eSite networks.
eCentre (http://www.flexenclosure.com/ecentre) is a prefabricated, fully equipped modular data centre solution, to house and power data and telecom equipment. Optimised for energy efficiency and low TCO, eCentre is specifically designed to be fast to deploy and fully future proof.
Flexenclosure was founded in 1989 and is based in Vara, Sweden, headquartered in Stockholm and with additional offices in Ivory Coast, India, Kenya, Malaysia, Mozambique, Nigeria and the UAE. Customers include global companies airtel, MTN, Vodacom and Zain.

Sponsor / Cost / Location

Product Line	IFC Investment (million USD)
Risk Management
Guarantee
Loan
Equity	12.42

Development Impact

The project is expected to achieve significant development impacts:
-Improved mobile telecommunication coverage in rural areas through increased reliability of power supply for mobile telecom towers;
-Improved competitiveness of mobile operators and tower companies through reduced operating cost;
-Climate positive investment through reduced diesel consumption and carbon emissions;
- Generate local jobs during implementation and operations in remote areas.

-Financing & Stamp of approval: IFC''s investment in Flexenclosure will provide the Company with a vital "stamp of approval" which helps the Company to raise next round equity investment from three other private equity funds in 2013 to implement its business plan;
-Knowledge sharing: IFC is able to provide deep knowledge and experiences in the niche market of energy efficiency for telecom as a result of the joint IFC / GSMA Green Power for Mobile initiative;
- Global presence: IFC will provide the Company with a global network and access to IFC portfolio companies including mobile operators, tower companies, data centers and power management companies in its target markets.
-On-going support: IFC will be able to advise the Company on corporate governance, environmental & social issues and future capital raising efforts;
- Demonstration effect: this is IFC''s first investment in renewable energy / energy optimization solutions that benefit the mobile telecom sector in rural areas in Sub Saharan Africa and South East Asia. It sends a strong signal to other climate business investors to tap into a vast and growing market segment in need of early stage and growth capital.

E&S Category Rationale / Risks and Mitigation

Flexenclosure''s project provides environmental and social benefits by increasing the use of renewable energy and energy efficiency and reducing fossil fuel usage and associated greenhouse gas emissions. Through the project''s provision of prefabricated data center modules that require less civil works than traditional data centers, the project also reduces the environmental footprint that might otherwise be created by its customers'' data processing facilities.

Key environmental and social risks are in various aspects of the assembly and installation of Flexenclosure''s products. Risks are low in Flexenclosure''s operations in Sweden. While the potential for outsourcing in several countries that had been pursued is longer being considered at present, in the event that it will be pursued in the future, such outsourcing would be required to comply with IFC Performance Standards.

Where data center modules are installed by Flexenclosure on customers'' sites, any civil works are managed by those customers. In Flexenclosure''s assembly and installation of both data center and renewable energy modules at customers'' sites, environmental and social risks are low. While Flexenclosure has policies and procedures to manage those risks and impacts, Flexenclosure will review those policies and procedures under IFC''s investment to ensure that they comply with IFC Performance Standards, and Flexenclosure will be required to report any environmental or social incidents to IFC.

Contacts

For Inquiries About the Project, Contact

David King
CEO
Telephone: +46 510 42 70 00
Email:mailto:david.king@flexenclosure.com
URL: http://www.flexenclosure.com/

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