Philippines

WEnergy Global 3

With a loan of EUR 100,000 WEnergy Global can start construction of their flagship hybrid solar installation in Puerto Princesa.

  • Direct investment
  • 2 new jobs
  • 650 people reached
  • 25000 tons of CO2 reduced
Issuer

€100,000

Amount

36 months

Maturity

5.50%

Annual interest
100%
Fully funded in 3 days on 17 April 2018.
+ 200 other investors

Basic info

Borrower: WEnergy Global Pte. Ltd.
Currency: EURO
Amount: 100K
Maturity: 36 months, semi-annually and linearly amortizing
Interest rate: 5.5% p.a.
 

Direct loan

This is a direct loan to a company (rather than lending to a financial institution) and therefore it is recommendable that you are careful with the amount you will invest. 

Summary of the campaign

This loan is aimed at enabling WEnergy Global to co-finance the Sabang Project, which is a flagship project of the company and the first smart micro-grid in South East Asia to commence construction in April 2018. The project, which is near the Puerto Princesa Underground River Area, a UNESCO World Heritage Site in Palawan, Philippines, aims at boosting social and economic development while encouraging sustainable tourism. The ambition of WEnergy Global is to build, own, operate this project – jointly with two strong local partners – and replicate this technology and business model across the Philippines, Indonesia and Myanmar in the coming years. This project will help the Government to save millions of euros of subsidies while powering people for productivity and building their families. It will reduce over 25,000 tons of carbon emissions, equivalent to over 9,000,000 litres of diesel.

The power system – with 1.4 MW Solar PV, 1.2 MW Diesel, 2.3 MWh of Li-Ion batteries and 14 km of distribution network using 650 smart meters - is designed to set an example for 24/7 rural or off-grid electrification using renewable energy. The power plant includes an Expo Centre aiming to invite tourists (almost 85% of all the 355,000 tourists travelling to the region are Philippine nationals) to learn about renewable energy in the ‘energy mix’. This Expo Centre will work closely with the City Government and several other national and international parties to enhance awareness in the area of renewable energy and energy-saving technologies.

It’s important to note that the diesel generators are still required to serve as a backup when the stored solar energy in the battery is insufficient to cater to the night time demand or during daytime whereby the sun is less strong (i.e producing lesser solar energy). Due to the fact that solar power is only generated during daytime however people, businesses, and hospitals for example, also rely on power at night. The solution of using solar power in the mix allows a reduction of approx. 50% of diesel in the years to come and therefore provides much cleaner and cheaper energy to the people and businesses in the region. Over time, the project intends to increase its solar PV base and substitute fossil diesel fuel with biodiesel or even Tidal energy (from the adjacent sea), once economically feasible and available, to further increase the proportion of renewable energy in the mix.

This loan will impact approx. 650 small and large off-takers. From households to small businesses, to small, medium and large hotels and resorts, to schools and eventually medical centres. Imagine how many lives will be impacted by having access to cleaner energy due to this project, and you can contribute by lending-a-hand! See video link

About WEnergy Global

WEnergy Global Pte. Ltd., a company based in Singapore, is active in project development, designing, building, (partial) owning and operating renewable energy power infrastructure with clear and focused actions on the ground in South East Asian countries with 120 million people having no access to electricity.

The strategic focus is on providing access to electricity to villages and towns in off-grid areas through micro-grids powered by renewable energy sources, but also – when required by the local regulations – use conventional diesel technology to provide 24/7 electricity.  The company is growing its portfolio to an estimated €200 million in the next 3-5 years, as the opportunities are huge and building on the strong support from the team of vast experienced international professionals. For more information see the website

WEnergy Global was established by Ir. Atem Ramsundersingh, who is the CEO, with over 30 years of international experience with business and project development in emerging economies. He worked at the World Bank and UNESCO-IHE Institute for Water and Environment (Delft, NL) among others, and holds a Masters Degree in Infrastructure Engineering from Delft University of Technology. Currently, the company has six shareholders from The Netherlands, Germany, Austria, Hong Kong and Australia. More information about Atem

Management team

Fabian Weber (Dipl.-Eng): joined WEnergy Global in 2012 as Head of Systems Design and Engineering. He used to work at SunEnergy Europe GmbH (Hamburg, Germany) and is a professional engineer holding a Masters degree from the Technical University of Berlin and a Masters degree from the Ecole Nationale des Points et Chaussees in Paris.

Dr Robert de Groot: joined WEnergy Global in 2016 as the Lead Power Transmission and Distribution Engineer. He used to work with ENEXIS BV (‘sHertogenbosch, The Netherlands) and obtained his Masters and PhD degrees from the TU Eindhoven.

Agnes Valentine: joined WEnergy Global in 2016 as the Senior Energy Investment Officer. She used to work with Mission NewEnergy (Kuala Lumpur, Malaysia) and obtained her Master's degree in Corporate Finance from the Southern New Hampshire University.

Tan Sock Min: joined WEnergy Global in 2013 as the Senior Corporate Finance Manager. She used to work with Turiya Technologies (Singapore) and is a member of the Association of Chartered Certified Accountants (ACCA) holding a Bachelor’s degree in Accounting from the Oxford Brookes University Business School, United Kingdom.

Penny Gan: joined WEnergy Global in 2013 as the Senior Logistics & Procurement Manager. She used to work with CEM-PYRAMID Manufacturing (Singapore) and obtained her Bachelor's degree from the Royal Melbourne Institute of Technology, Australia.

 

 

Company nameWEnergy Global 3
CEOAtem Ramsundersingh
Founded2012-01-01
LocationSingapore, Manila
SectorSustainable energy projects
Turnover€701,766
Employees10

Impact of this project

  • With this investment 2 jobs are created
  • With this investment 650 people are reached
  • With this investment 25000 tons of CO2 are reduced

About the investment

TypeDirect investment
IssuerWEnergy
Funding target€100,000
Annual interest5.50%
Maturity36 months
Repayment periodSemiannually
CurrencyEUR
Terms and conditionsShow
Note termsDownload
Information document issuerDownload

About the risks

What are the risks of investing money?

Our local partners cover the risk of currency exchange rates and loan defaults. They do this by maintaining financial reserves for this purpose . In addition, there is an option to claim their equity if needed. While these measures are intended to minimize the risk to funders, our local partners face risks of their own that could effect their ability to secure a loan. These include: - bankruptcy - currency exchange rates - fraud - operational risks - political and regulatory changes - natural disasters or epidemics.

If you invest direct in a company, hence not via a local partner, risks of default are not covered. As the risk that comes with direct lendings is generally higher than an investment through a local partner, the interest rate is also higher.

There is also some operational risk at Lendahand. An example might be that Lendahand is unable to find shareholders to finance their activities. In such a case, Lendahand will handle outstanding loans at the best of its ability. At the same time, our ability to legally address non-payment from local partners becomes understandably difficult.

How does Lendahand minimize the risks?

Local partners must adhere to our mission and work with us to provide loans that are affordable. This insures that local entrepreneurs have access to financing that allows them to grow their business. A local partner must also have a track record. In other words, they must have proven themselves as a meso-credit provider for SMEs. This means (for instance) that the partner must have a solid credit portfolio, along with enough buffers and equity to compensate for unexpected downturns. We also check the organizational structure of the partner and how robust their (internal) procedures are. Finally, the loans that a local partner receives via Lendahand must be in proportion to the partner's total balance sheet. A healthy balance between effectuating influence and independence is crucial. If you would like to receive more information on the financial indicators we employ, please contact us via info@lendahand.com.

When currency exchange risks become too high for a local partner, Lendahand will urge the local partner to cover these risks. In some scenario's the local partner is contractually obliged to comply with these demands.

Lendahand will always conduct due diligence when a Company requests for a direct loan. To provide more insights on risks, an independent partie comes in to perform brief analysis on direct loans. The results can be downloaded on the project detail page of the direct loan. However, this analysis serves primarily as a tool for your own opinion and conclusion. Pay attention to the fact this analysis is not an investing advice.

Does Lendahand provide guarantee on the loans?

Normally we don't. Local partners take care of the repayment, even if (some) entrepreneurs are unable to do so themselves. If the local partner is for some reason unable to repay then there is a chance of partial or full loss of your money. For this reason Lendahand only selects financially solid partners based on strict criteria.

Also, for most direct loans no guarantee is provided. For these investments currency risks are covered however.

Sometimes - and only for some direct investments in Africa - our partner Sida, part of the Swedish government, will provide a guarantee with a maximum of 50%. If this is the case, it will be indicated explicitly.

Does Lendahand have a license or exemption?

Yes. The Dutch Authority Financial Markets (AFM) has provided Hands-on B.V. (with trade name 'Lendahand') in September 2016 with an investment firm license in accordance with article 2:96 of the Financial Markets Supervision Act (Wft). Placing orders on Lendahand's website is therefore an AFM regulated activity. Lendahand also meets its minimum capital requirements of EUR 125,000 following its license as required by De Nederlandsche Bank (DNB).

Lendahand uses an exemption from an approved prospectus that is available up to EUR 5 Million per year. 

How safe are my personal details?

We adhere to strict safety requirements with regards to private and payment details. All sensitive data is sent through an encrypted connection (https). Also, data is stored (encrypted) in a secured facility provided by AWS: the world largest hosting service. Customer documents can only be retrieved by a secured connection and multi-factor authentication.

What happens if the local currency devaluates?

Our local partners and Companies bear the exchange rate risks. We settle the loan, redemptions, and interest payments in euro.

Does Lendahand use a third foundation fund?

Lendahand works with Intersolve EGI: a Dutch financial institution that specialises in offering services in the field of payment settlement and electronic money. To be able to offer these financial services Intersolve EGI must comply with the applicable financial legislation. Intersolve EGI is therefore supervised by De Nederlandsche Bank (DNB) and the Netherlands Authority for the Financial Markets (AFM) and is in possession of a license to act as an Electronic Money Institution (and therefore also has a license as a Payment Institution). Your money will be deposited on a protected and secure bank account until the project you have invested in has been fully funded. Intersolve in no way has access to these funds. Once the project is fully funded, the money is transferred to the local partner or company in question.

What happens with my money if Lendahand goes bankrupt?

If Hands-On BV (containing the brand name Lendahand) would go bankrupt trades between Lendahand and payment service provider Intersolve EGI would cease immediately. Intersolve will then transfer the funds in your personal wallet to your bank account (Note: if at this time the project you have invested in has been fully funded and the money has thus been transferred to the local partner, these funds will not be transferred back to your bank account). Intersolve will then in consultation with a trustee handle all repayments between the investors and investees up until the final repayment of the last project has taken place.

Additionally, Lendahand is part of the investor compensation scheme (ICS). This scheme aims to compensate individuals and small businesses who have trusted money and or financial instruments (such as notes or options) to a licensed bank, investment firm or a financial institution in case the financial firm is unable to meet its obligations arising from claims related to the investment service (in other words, if Hands-On BV is not keeping track of the acquired notes by investors in the Wge depot correctly). The ICS guarantees an amount of up to EUR 20,000 per individual. For more information, go to www.toezicht.dnb.nl/en/2/50-202210

Why is my money going via Intersolve EGI?

As part of the AFM license for investment firms it is required that operational activities carried out by Lendahand (maintaining the website, contracting of local partners, legal issues, etc.) are strictly separated from financial transactions (payments made through the website). Intersolve takes care of the payments. This collaboration offers you more security, since your money is placed on a protected bank account immediately after you have made your payment.

What happens when a local partner goes bankrupt?

When a local partner goes bankrupt, there will be a chance that you lose (part of) the amount you lend. Obviously Lendahand will try to recover outstanding payments, but the success rate will be limited in such situations. For the investor there is no possibility to take action against the financial institution. From a legal point of view the local partners are separated, therefore it is recommendable to spread loans across different local partners.

About WEnergy

Total assets€1,754,216.56
Revenue (per year)€3,598,609.27
Equity / total assets76.00%
Liquidity153.00%

We have already contributed for WEnergy Global 3

Chris Vandenplas
Niek de Bruijn
Hans Bierhuis
Marlies Witteveen
Martijn Kistemaker
+ and another
200
investors