d.light, a leading global provider of off-grid solar products, has closed a new securitization facility that will purchase $176 million of receivables in East Africa, primarily in Kenya, Tanzania, and Uganda.
This facility follows a previous $238 million multi-currency receivable financing agreement with Solar Frontier Capital (SFC) that expanded d.light’s securitization facilities beyond Kenya into Tanzania. In total, d.light has now secured $490 million in securitized financing through structures arranged by African Frontier Capital (AFC).
The new $176 million facility will provide d.light with quick and flexible working capital to enable the company to continue offering consumer finance for its off-grid solar products in the region.
The structure involves d.light selling its Pay-As-You-Go (PAYG) receivables to a special purpose vehicle (SPV), which is then financed by senior lenders including the U.S. International Development Finance Corporation (DFC), Norfund, responsAbility’s managed funds, and Oikocredit.
Related: d.light to participate in USD$148M off-grid solar grant facility in Uganda
d.light has a solid track record of utilizing securitized finance to support its solar-powered household products in sub-Saharan Africa.
In 2020, d.light and AFC established the $110 million Brighter Life Kenya 1 (BLK1) securitization vehicle, the first of its kind in the off-grid solar industry. BLK1 has now successfully repaid its senior debt in full, ahead of schedule, demonstrating the viability of providing structured consumer credit at scale to underserved communities.
These securitization facilities are enabling d.light to expand energy access, financial inclusion, and climate resilience to millions of people living off-grid in East Africa. The structures are seen as replicable models that can be expanded across the industry to meet growing demand for working capital in the off-grid solar sector.
The company has collaborated with distribution partners in Kenya, Uganda, and Tanzania since 2010. The company has had its own operations in Kenya since 2011, in Uganda since 2015, and in Tanzania since 2016.
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