d.light closes $176m financing to scale solar products in East Africa
TLDR
- d.light secures $176 million through securitization for off-grid solar solutions in Kenya, Tanzania, and Uganda.
- African Frontier Capital provides financing to scale up PayGo consumer finance offering for solar-powered products to low-income households and communities without electricity access.
- Goal to reach six million people with reliable and renewable energy in the next three years, expanding on successful transactions in Nigeria.
d.light, a company that provides off-grid solar solutions, has closed a new securitization multi-currency facility that will purchase $176 million of receivables in Kenya, Tanzania, and Uganda.
The new financing, provided by asset management company African Frontier Capital, will be used to scale up its PayGo consumer finance offering to make solar-powered products available to more low-income households and communities who do not have access to electricity.
The facility aims to enable six million people across the three countries to access reliable and renewable energy over the next three years and comes after a similar transaction in Nigeria involving Chapel Hill Denham and d.light. With the new capital, it has closed securitized financing with a total combined purchasing value of US$718 million across five separate facilities since 2020.
Key Takeaways
d.light has operated in Kenya since 2011, Uganda since 2015, and Tanzania since 2016. Before securing this latest capital, d.light also obtained $30 million to purchase up to US$125 million of receivable assets last year. The funding, obtained from the Eastern and Southern African Trade and Development Bank Group, will be used to increase its existing securitized financing facility in Tanzania and scale up its low-cost Pay-Go personal finance service in the country, allowing more low-income people and households to purchase the company’s solar-powered household products. According to the company, it caters to the needs of customers who do not have access to reliable power or financing.
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