Solar Frontier Capital Limited (SFC), and d.light design Inc. have jointly announced the establishment of a Ksh 6.9 billion financing vehicle, Brighter Life Kenya 1 Limited (BLK1).
The BLK1 is an off-balance sheet financing vehicle which will be dedicated to acquiring pay-as-you-go (PAYGO) Solar Home System (SHS) accounts receivables from d.light’s Kenyan subsidiary, d.light Limited to provide the company with flexible, working capital to finance its continued growth.
“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,” said d.light CEO Ned Tozun.
BLK1 is expected to finance the provision of improved energy access to 1.2 million people in Kenya, coming on the heels of d.light celebrating its 100 millionth customer.
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“DFC is proud to team up with d.light and AFC to expand affordable energy to more than a million Kenyans living in off-grid communities,” said DFC Managing Director for Africa Worku Gachou.
“This innovative collaboration will deliver reliable electricity access that individuals depend on to live, cook, and learn and businesses require to grow, invest, and create jobs.”
The two-year commitment 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 $20 million senior debt commitment from U. S. International Development Finance Corporation (DFC).
