WEnergy Global 2

With a loan of EUR 200,000 WEnergy Global can start building a rooftop solar PV system at the Saint Mary University.

  • CountryPhPhilippines
  • TypeDirect investment
  • IssuerWEnergy
  • Amount€200,000
  • Annual interest6.00%
  • Maturity36 Months
  • CurrencyEUR
  • 8 new jobs
  • 32 people reached
100%

Fully funded in 29 days.

IMPORTANT NOTE: high risk product - direct loan to solar company. No local partner in between to cover risks. 

Basic info

Borrower: WEnergy Global Pte. Ltd.
Currency: EURO
Amount: 200K
Maturity: 36 months, semi-annually and linearly amortizing
Collateral: None
Interest rate: 6% p.a.

Direct loan

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


Summary of the campaign

WEnergy Global is expanding its operations in the Philippines in the field of rooftop solar projects.   

In August 2016, WEnergy Global designed, installed and commissioned a 200 kWp solar power plant on the roofs of the Saint Louis College in San Fernando, La Union, Philippines. Click here to see a video impression.

Since then the private college has saved over PHP 1,500,000 or approximately €30,000 and 105 metric-tons of CO2-equivalents.  The rooftop solar powerplants survived two typhoons with windspeeds of above 200 km per hour. This commercial project was the result of a one-day workshop in April 2016 on Developing Sustainable Campuses for the leadership of the private colleges and universities united in the CICM (Congregatio Immaculati Cordis Mariae), a Catholic Organisation closely affiliated with Belgium and The Netherlands. Click here to see a video impression.      

This success has been celebrated through the adoption of a resolution by all members to install rooftop solar PV on all their campuses in the Philippines. This has triggered the 2nd project at the Saint Mary University (SMU) in Bayongbong with a 219 kWp rooftop solar PV system to be installed between in September-November 2017 and to be completed before Christmas 2017. The 3rd project is scheduled for Saint Louis College in Tugueraroo with a 200 kWp project. The estimated total cost of these two projects is € 585,000.00 See pictures of a site visit by the WEnergy Global Team.   

In addition to the CICM group, WEnergy Global is currently working with the management of several private hospitals, medical centers and colleges in San Fernando, Tarlac and Tacloban, to design and install a total of 1,000 kWp rooftop solar power plants on their campuses. The estimated total cost of these projects is € 1.4 million.   

With the above businesses to be executed in the coming 3-6 months, WEnergy Global needs to boost its working capital base.

About WEnergy global 

Vision & Mission

The vision of WEnergy is to become a major quality provider of renewable energy systems solutions with fair and attractive returns on investments, inspired by the broader principles for sustainable life-styles and joyful-living, through global partnerships and engagement with stakeholders.

Their mission is to develop, plan, design, build, co-own and operate renewable energy systems for users at national, local, and individual industrial and household-scales, on-grid or off-grid.

The aim of the company is to deliver a minimum of 800 MW of new renewable energy capacity in emerging economies in the next 8 years through solar power systems, biomass energy systems, wind-power technologies and small-hydropower systems.

Management Team

Atem Ramsundersingh: CEO, with over 25 years of international experience with business and project development in emerging economies. 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.

Fabian Weber: Head of Systems Design & Engineering, with over 12 years of experience in plant design, construction & monitoring of solar PV and hybrid power systems with energy storage. Worked at SunEnergy Europe GmbH and holds a Masters degree from the Technical University of Berlin and a Masters degree from the Ecole Nationale des Points et Chaussees in Paris.

Robert de Groot: Lead Transmission & Distribution Engineer, with over 5 years of experiences and deep knowledge in electrical modeling, design and engineering of smart micro-grids with energy storage systems, related power management, O&M management planning. Worked with ENEXIS B.V. in The Netherlands and holds a Masters Degree in Electrical Engineering from Eindhoven University of Technology; expected to complete his PhD in Electrical Engineering at TU Eindhoven by end of 2016.

Agnes Valentine: Senior Energy Investment Specialist, with over 8 years of experience and knowledge in energy investment structuring & finance in high stakes environments in ASEAN. Worked with PT Jawa Power, the power supplier of the Java - Bali grid in Indonesia, PT Ferrostaal Indonesia, a full subsidiary of Ferrostaal GmbH, and Mission NewEnergy Pte Ltd in Malaysia. She holds a Masters Degree in Corporate Finance from the Southern New Hampshire University, USA. 


Quintin Pastrana: President of WEnergy Power Philipinas Inc. (WPPI), a joint venture company of WEnergy Global aimed at increasing the presence in the Philippine market for renewable energy, including speed of after-sales services. Quintin has over 20 years experience in energy, governance, and development. He has a broad corporate and project development experience in the energy and minerals sector, leading Chevron's upstream and geothermal unit's policy, government and public affairs division and recently served Vice President for Sustainable Development for Gold Fields, in the Philippines. Quintin is a founding member of the multi-sectoral Renewable Energy Coalition that supported the development and passage of the landmark Renewable Energy law in the country, the first in Southeast Asia. He graduated with masters degrees in business, international relations, and literature from the Universities of Georgetown, Oxford, and Cambridge.


Besides the management team, there is an experienced Board of Directors with over 150 years of combined experience in international business, project development, finance and investments, renewable energy and engineering and project execution and operations. 

Previous projects: http://www.wenergyglobal.com/projectsub/solar-projects/


Awards

2014 – Erasmus Centre for Future Energy Business, RSM, Erasmus University (in Rotterdam)

2016 – Dr Albert Winsemius Award 2016 for Innovation & Sustainability (Category “Rising Stars”)

(second on the left CEO Atem Ramsundersingh)

2016 - Singapore APEX Corporate Sustainability Award

Documentation

  • Company nameWEnergy Global 2
  • OwnerAtem Ramsundersingh
  • Founded2012
  • LocationManila
  • SectorSustainable energy projects
  • Turnover€740,000
  • Employees13

Impact of this project

  • With this investment 8 jobs are created
  • With this investment 32 people are reached

About the investment

  • TypeDirect investment
  • IssuerWEnergy
  • Funding target€200,000
  • Annual interest6.00%
  • Maturity36 Months
  • Repayment periodSemiannually
  • CurrencyEUR

About the risks

What are the risks of lending money to entrepreneurs?

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?

No. 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 direct loans no guarantee is provided.

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 or in dollar.

Does Lendahand use a third foundation fund?

Lendahand works with LemonWay, a regulated payment service provider. Since LemonWay is a French company there is no 'Stichting Derdengelden' as such. However, LemonWay works in a similar manner and has a license from the French ACPR (Autorité de Contrôle Prudentiel et de Résolution). Your money will be deposited on a protected and secure bank account until the project you have invested in has been fully funded. LemonWay 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 LemonWay would cease immediately. LemonWay 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). LemonWay 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. 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 to a payment service provider?

As part of the AFM license for investment firm 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). LemonWay 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 LemonWay goes bankrupt?

The money of investors already on the (shielded) bank account of LemonWay will not be part of the bankruptcy. Bank BNP Paribas will then handle the case. Money outstanding with Local Partners and Companies (direct loans) will be handled by a to propose curator.

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€612,698
Revenue€701,766
Leverage ratio18.80%
Solvability23.00%
Liquidity35.00%

We have already contributed for WEnergy Global 2

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