USD 127 million Social Impact Securitization Vehicle for d.light Kenya

(Press release) BLK1 has increased the size of its local currency receivable financing facility for d.light’s Kenyan business to USD 127 million with an additional USD 15 million of senior debt from Norfund. The expansion sees Norfund join DFC as a senior lender in the BLK1 structure, which is a local currency impact financing vehicle dedicated to providing d.light’s Kenyan PAYGO SHS business with access to on-going, flexible and sustainable receivables funding.

Nairobi, Kenya, 21 January, 2021 – Solar Frontier Capital Limited (SFC), a wholly-owned subsidiary of African Frontier Capital (Mauritius) LLC (AFC), d.light design Inc. (d.light), a leading global innovator of solar energy products and Norfund, the Norwegian Investment Fund for Developing Countries, have jointly announced the expansion of Brighter Life Kenya 1 Limited (BLK1). The expansion sees Norfund join the United States International Development Finance Corporation (DFC), who acted as the original cornerstone senior lender, in the structure as a co-senior lender.

BLK1 is an off-balance sheet financing vehicle that is dedicated to acquiring pay-as-you-go (PAYGO) Solar Home System (SHS) accounts receivables from d.light’s Kenyan subsidiary, d.light Limited (d.light Kenya). It has been set up to provide the company with flexible, working capital to finance its continued growth.

BLK1 has been structured to provide d.light Kenya with local currency financing (up to the Kenyan Shillings equivalent of ca. USD 127 million in face value of receivables purchased2) over a two year commitment period and is intended as the first in a series of vehicles designed to provide d.light with continuing access to sustainable and affordable local currency receivable financing.

Part of BLK1 is being financed by a senior debt facility with USD 20 million of commitments from DFC and USD 15 million from Norfund3. SFC acts as the subordinated lender and the master servicer under the transaction and, more generally, as sponsor of the structure.

Source: African Frontier Capital

 


 

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