Solar Frontier Capital Limited (SFC), a wholly-owned subsidiary of African Frontier Capital (Mauritius) LLC, and d.light design Inc. (d.light) have jointly announced the establishment of a $65 million financing vehicle, Brighter Life Kenya 1 Limited (BLK1). BLK1 is an off-balance sheet financing vehicle, incorporated in Jersey that is dedicated to acquiring pay-as-you-go solar home system accounts receivables from d.light’s Kenyan subsidiary, d.light Limited (d.light Kenya). This is being done in a bid to provide the company with flexible working capital to finance its growth.
BLK1 is expected to finance improved energy access to 1.2 million people in Kenya. BLK1 has been structured to provide d.light Kenya with local currency financing over a two year commitment period and is intended as the first in a series of vehicles designed to provide d.light with continuous access to sustainable and affordable local currency receivable financing.
Part of BLK1 is being financed by a $20 million senior debt commitment from the US International Development Finance Corporation. SFC will act as the subordinated lender, master servicer under the transaction, and as sponsor of the structure.
Commenting on the transaction, Ned Tozun, CEO, d.light CEO said, “We are excited to announce this innovative funding structure in partnership with SFC. BLK1 provides us with the flexible local currency receivable financing we need to make our Kenyan business sustainably cash flow positive, which is an important milestone for sustainability for d.light and the off-grid energy industry as a whole.”