- d.light has announced the closing of a new securitization facility that will purchase USD$176 million of renewables.
- With this new facility, d.light has closed securitised financing with a total combined purchasing value of USD$718 million across five separate facilities since 2020.
d.light, the global provider of household products and affordable finance for low-income households, has announced the closure of a new securitization facility to purchase USD$176 million of renewables in Kenya, Tanzania, and Uganda. Social impact-focused asset management company African Frontier Capital is providing the new financing.
d.light will use the facility to scale up its PayGo consumer finance offering and make solar-powered products available to more low-income households and communities without access to electricity. Over the next three years, the multi-currency facility will enable access to reliable, renewable energy for an estimated six million people across the three countries.
With this new facility, d.light has closed securitized financing with a total combined purchasing value of USD$718 million across five separate facilities since 2020. d.light CEO Nedjip Tozun said, “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, offering solar home systems and high-efficiency appliances to the people that need them most affordably and sustainably.”
Tozun continued, “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.”
Earlier this year, in February, d.light announced that its USD$110 million securitization facility, Brighter Life Kenya 1 Limited (BLK1), successfully repaid its entire senior debt in full and ahead of schedule from internally generated cash flows – the first facility in the off-grid solar sector to do so.
Eric De Moudt, AFC’s founder and CEO, said, “This milestone is a testament to how data-driven financial innovation can play an important role in bringing financial inclusion to the world’s most vulnerable communities, helping them to gain access to clean and modern energy and the ensuing social and economic benefits that come about as a result. We are grateful to d.light for its ongoing leadership in the off-grid solar sector and proud to partner with such a visionary company.”