Good news for Greenlight Planet. The Kenyan subsidiary of the solar home system supplier now has a line of credit of $ 75 million in local currency (Kenyan shilling). Credit is provided by CDC Group, the UK government’s development finance institution, and Norfund, a private equity firm owned by the Norwegian Ministry of Foreign Affairs.
In arranging this line of credit, the US finance company Citi acted as the “sole coordinator” of the transaction, while Standard Bank acted as the sustainability coordinator and executed the currency conversion to facilitate repayment. parent loan, which helped funding in Kenyan. shillings. In addition, Dentons acted as legal counsel to the lender on the transaction and Power Africa provided legal support and advice to Greenlight Planet on the transaction, assisting in the negotiation and review of financing documents and guarantee.
What impact in rural Kenya?
According to CDC Group, the loan denominated in Kenyan shillings will minimize Greenlight Planet’s exposure to exchange rate fluctuations, allowing the company to focus on growth, jobs and innovation. The company will leverage the funding to accelerate the deployment of its operations in Kenya. The Chicago-based company finances and distributes Sun King branded solar home systems.
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These electricity access devices consist of solar panels, batteries for storing electricity and electricity-saving LED bulbs. This solar home system also has charging stations for mobile phones, radio and even television. Solar kits are distributed through a pay-as-you-go system to facilitate accessibility to rural populations. “The transaction aligns Greenlight Planet’s funding with its environmental and social impact goals related to financial inclusion, clean energy and gender equality, by incorporating sustainability performance goals into installation. says CDC Group.
This funding will help achieve the goals of Greenlight Planet. The company, headed by Patrick Walsh, aims to provide access to electricity to 10 million homes around the world over the next five years. Currently, the company claims 60 million rural consumers in more than 65 countries.