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 $6 million.
Structured as a bankruptcy-remote special purpose vehicle, the facility will enable renewables company to deploy solar home systems to 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 designed for solar companies deploying systems through pay-as-you-go and solar leasing models in developing countries.
Commenting on the development, Willem Nolens, SolarNow CEO, said: “This new step of our partnership will enable us to continue tackling the massive unmet market opportunity in East Africa of providing affordable energy to millions of off-grid households, and to reach 70% of Uganda’s off-grid population with solar home systems.”
Off-grid energy for remote communities
A statement explained that the facility enables the solar company to expand their offerings and reach more people living without access to energy. Read more…
The syndication was led by SunFunder, with each lender providing $2 million to the facility. SunFunder, acting as the arranger, lender and facility agent, arranged the $6 million facility with social investor Oikocredit and an energy fund focusing on energy access and managed by responsAbility Investments as co-investors.
SunFunder CEO, Ryan Levinson, also commented: “Our customers need more scalable, less time-consuming financing options so they can focus on their core business delivering solar energy. By leading syndications, SunFunder offers solar companies larger ticket size loans with less hassle. We are delighted to build on our long-standing relationship with SolarNow and bring in additional investors.”
Speaking on behalf of Oikocredit, Investment Officer Maite Pina, said this backing demonstrates their commitment to supporting off-grid solar in the long-term. Read more…
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