- Solar Frontier Capital and d.light establishes an RE financing vehicle
Solar Frontier Capital, a subsidiary of impact investment firm African Frontier Capital and D.light, a solar-powered product manufacturer have partnered to establish a $238 million financing vehicle.
The financing vehicle, Brighter Life Kenya 2 (BLK2) is an off-balance-sheet financing vehicle that provides d.light with flexible working capital, allowing the company to provide consumer financing and expand access to its products such as solar home systems to high-efficiency appliances and smartphones.
BLK2 is the largest financing facility in the industry at present and has been structured to provide d.light with multi-currency funding over a two-year commitment period.
The facility is partly funded by a $62 million senior lending facility supported by US International Development Finance Corporation, Norfund responsAbility’s managed funds and Oikocredit. AFC acts as the subordinate lender and master servicer and backup servicer under the transaction as well as the sponsor of the structure.