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Ned Tozun, co-founder and CEO of d. light/COURTESY

Finance

d.light, Solar Frontier Capital announce Sh6.5 billion local currency receivable financing facility for Kenya

NAIROBI, Kenya, Jul 13 – Solar Frontier Capital Limited and d.light design, the leading global innovator of solar energy products, have jointly announced the establishment of a KSh6.5 billion financing vehicle to be known as Brighter Life Kenya 1 Limited.

The off-balance sheet financing vehicle is dedicated to acquiring pay-as-you-go solar home system accounts receivables from d.light’s Kenyan subsidiary to provide the company with flexible, working capital to finance its continued growth.

BLK1 is expected to finance the provision of improved energy access to 1.2 million people in Kenya, coming on the heels of d.light celebrating its 100 millionth customer.

“We are excited to announce this innovative funding structure in partnership with SFC,” said d.light CEO Ned Tozun.

“BLK1 provides us with the flexible local currency receivable financing we need to make our Kenyan business sustainably cash flow positive, which is an important milestone for sustainability for d.light and the off-grid energy industry as a whole.”

Eric De Moudt, founder and CEO of AFC, said: “We have been very impressed with d.light as a leading innovator in the distributed energy access sector, and SFC is delighted to be partnering with them on this high impact receivables financing structure.

“We are greatly looking forward to supporting d.light with on-going access to affordable and sustainable financing to continue impacting so many lives in Kenya and around the world.”

The project has been structured to provide d.light Kenya with local currency financing over a two-year commitment period and is intended as the first in a series of vehicles designed to provide d.light with continuing access to sustainable and affordable local currency receivable financing.

Part of BLK1 is being financed by a Sh2 billion senior debt commitment from US International Development Finance Corporation.

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SFC, a wholly-owned subsidiary of African Frontier Capital (Mauritius), acts as the subordinated lender and the master servicer under the transaction.

“DFC is proud to team up with d.light and AFC to expand affordable energy to more than a million Kenyans living in off-grid communities,” said DFC Managing Director for Africa Worku Gachou.

“This innovative collaboration will deliver reliable electricity access that individuals depend on to live, cook and learn and businesses require growing, investing, and creating jobs.”

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