Lexo Energy

pending

Lexo Energy Mauritius Limited (referred to as “Lexo” or the “company”) is a leading operator of fueling and convenience stations in East Africa with operations in Kenya and Tanzania. Lexo’s core business is distribution of diesel and petrol through its network of retail fuel stations together with a variety of related products (LPG bottles and lubricants) and services (convenience store, car wash and fast-food services).Lexo was founded in 2017 and by December 2020, acquired 31 and 6 retail fuel stations in Kenya and Tanzania, respectively. Lexo operates through a “company leased company operated” (CLCO) model whereby the company leases fuel stations from the owners and operates the fuel stations under its own brand. Upon acquisition of a fuel station, Lexo carries out the required upgrading and automation of the leased station to integrate with its operational systems and operates it with its own staff (direct and contracted).IFC is considering a loan of US$14.2 million to finance the expansion of the network of fuel stations in Kenya and Tanzania (the “project”). This expansion will consist of acquiring other fuel stations mainly through the lease model but will also include the construction of at least one new station per country per year. The project also includes the gradual installation of EV charging areas at Lexo stations, starting with two pilot stations in the first 12 months. Lexo is aiming at a network of 200 fuel stations in 7 years, with an annual growth of 10-12 stations per country.