KENYA – Solar Frontier Capital Limited (SFC), a wholly-owned susidiay of African Frontier Capital (AFC) and d.light design Inc., a global innovator of solar energy products, have jointly announced the establishment of a KSh 6.9 billion (US$65 million) financing vehicle, Brighter Life Kenya 1 Limited (BLK1).
The BLK1 is an off-balance sheet financing vehicle, newly incoporated in Jersey, which will be dedicated to acquiring pay-as-you-go (PAYGO) Solar Home System (SHS) accounts receivables from d.light’s Kenyan subsidiary, d.light Limited to provide the company with flexible, working capital to finance its continued growth.
“We are excited to announce this innovative funding structure in partnership with SFC. 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,” said d.light CEO Ned Tozun.
“This innovative collaboration will deliver reliable electricity access that individuals depend on to live, cook, and learn and businesses require to grow, invest, and create jobs.”
The two-year commitment 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 US$20 million senior debt commitment from U. S. International Development Finance Corporation (DFC). SFC acts as the subordinated lender and the maser servicer under the transaction and more gnerally, as the sponsor of the structure.
“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 recievable financing structure,” said Eric De Moudt, founder and CEO of AFC.