Off-grid energy company SolarNow and investors comprising of SunFunder, Oikocredit and responsAbility Investments have established a new syndicated receivables financing facility to the sum of US $6m.
Structured as a bankruptcy-remote special purpose vehicle, the facility will enable renewables company to deploy solar home systems. This will cover a broad section of Uganda’s off-grid population by offering credit to end users.
The facility is SolarNow’s second structured asset finance instrument, known as SAFI, arranged by SunFunder. SAFI is a bankruptcy-remote special purpose vehicle whose design is for solar companies deploying systems through pay-as-you-go and solar leasing models in developing countries.
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Willem Nolens, SolarNow CEO, commenting on the development, said that this new step of the partnership will enable them to continue tackling the massive unmet market opportunity in East Africa of providing affordable energy to millions of off-grid households. “We will also reach 70% of Uganda’s off-grid population with solar home systems,” he added.
Off-grid energy for remote communities
The facility enables the solar company to expand their offerings and reach more people living without access to energy.
The syndication was led by SunFunder, with each lender providing US $2m to the facility. SunFunder, acting as the arranger, lender and also a facility agent, arranged the US $6m facility with social investor Oikocredit and an energy fund focusing on energy access and managed by responsAbility Investments as co-investors.
According to SunFunder CEO, Ryan Levinson the customers need more scalable, less time-consuming financing options. This is important so they can focus on their core business delivering solar energy. “Furthermore, by leading syndications, SunFunder offers solar companies larger ticket size loans with less hassle. We are glad to build on our long-standing relationship with SolarNow and bring in additional investors,” he said.
