d.light, a provider of off-grid solar solutions, closed a securitization facility that will purchase $176 million of receivables in Kenya, Tanzania, and Uganda. A social impact-focused asset management company, African Frontier Capital, is providing the funding.
“With this new facility, d.light has, for the first time in its history, receivables-based financing facilities in each of our PayGo markets – Kenya, Uganda, Tanzania, and Nigeria. These facilities allow d.light to remain consistently cash flow positive and remove the requirement for further external equity fundraising to fund our growth,” said d.light CEO Nedjip Tozun.
d.light will use the facility to scale up its PayGo consumer finance offering to make solar-powered products available to more low-income households and communities without access to electricity. The multi-currency facility will enable access to reliable, renewable energy for an estimated six million people across the three countries over the next three years.
With this new facility, d.light has closed securitized financing with a total combined purchasing value of $718 million across five separate facilities since 2020 according to the company.
“This new facility is another landmark step in d.light’s mission to provide people with affordable energy that is also clean, safe, and sustainable. It lets us expand our reach so that millions of off-grid families across Kenya, Tanzania, and Uganda can experience the benefits of solar energy. Facilities like this make our pioneering PayGo consumer financing model possible, with which we can offer solar home systems and high-efficiency appliances to the people that need them most in an affordable and sustainable way.”
According to Mercom’s 1H and Q2 2024 Solar Funding and M&A report, In 1H 2024, eight securitization deals totaled $2 billion, a 5% increase YoY compared to $1.9 billion raised in seven deals in 1H 2023.
Earlier this month, Ameresco, a company that develops and operates clean energy assets, secured a $100 million second-lien debt financing from Nuveen Energy Infrastructure Credit, with Oppenheimer & Co. acting as the Lead Arranger for the transaction.
