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d.light, the global provider of solar home systems, has launched a new financing vehicle to accelerate rural electrification in East Africa. Four impact investors have backed the special purpose vehicle with local currency financing.
d.light has launched the Brighter Life Kenya 1 Limited (BLK1) mechanism in 2021 which provides funding to purchase account receivables of d.lights’ pay-as-you-go solar home systems in Kenya. The new financing vehicle, BLK2, is a replica of BLK1 that allows pre-financing the electricity access equipment for rural populations.
BKL2 is expected to facilitate electrification in East Africa. The new facility is supported by the Norwegian development finance institution, Norfund. According to the investment company, the framework BLK2 is designed to provide d.light with multi-currency financing of up to $238 million in face value receivables, over a commitment period of two years.
The new financing facility will provide d.light with continued access to sustainable and affordable receivables financing for its solar home system business in Kenya as well as enabling its expansion into other African countries.
The new facility is also supported by the US development finance institution, DFC along with Dutch impact investor Oikocredit and several investment funds managed by the Swiss enterprise responsAbility.
BLK2 is expected to impact 2.8 million people, with improved access to clean energy for 1.9 million people. The financing vehicle d.light will have a positive impact on the environment as its solar home systems will result in avoiding 600,000 tons of CO2 equivalent emissions.
d.light has launched its first solar financing facility in partnership with Solar Frontier Capital (SFC), a subsidiary of Mauritius-based financial institution, African Frontier Capital. BLK1 which is worth $65 million, has received $15 million in funding from Norfund, which invested alongside DFC.