Innovative off-balance-sheet SPV deal structure designed to attract new sophisticated investors to the African off-grid solar sector
22nd January 2018, Cambridge, United Kingdom – At the Global Off-Grid Lighting Association conference in Hong Kong, Azuri Technologies, a leading provider of PayGo solar products and services across sub-Saharan Africa, today announced the launch of its innovative $20 million off-balance-sheet debt financing program to provide working capital for the expansion of off-grid energy and service provision in East Africa.
The program will be deployed in phases during 2018. The first phase of $4 million, which has already been concluded, includes investments from the European Union program ElectriFI, alongside Azuri, and its investment partners, including impact investment platform TRINE. The initial phase will be deployed in Kenya, providing additional financing to enable Azuri to supply its PayGo solar systems, including its new award-winning satellite-TV solution, and future product solutions, to tens of thousands more households across the country. Subsequent phases of the program will expand to Azuri’s other key territories in East Africa including Tanzania, Uganda, and Zambia.
The PayGo sector is growing rapidly and its continued expansion requires access to substantial levels of commercial debt capital. The Azuri financing program allows commercial debt to be raised and secured against the future revenues of Azuri customers. This has been made possible by the strong track record of customer repayments for Azuri’s PayGo products. It also provides confidence to debt investors who are able to use Azuri’s detailed customer data to ensure the finance is duly deployed to intended customers and that customer receipts are appropriately secured. The multi-phase debt program will enable Azuri to work with a consortium of new sophisticated lenders to support expansion the sector.
Azuri’s CEO, Simon Bransfield-Garth, commented: “Completing the first phase of our receivables financing program is a major step for Azuri. The support of ElectriFI is a great vote of confidence in the opportunity in the African off-grid home solar sector as a whole, and in Azuri in particular. It will enable us to attract a new set of commercial investors to expand the impact of our work.”
Hatem Mahbouli, Senior Investment Officer ElectriFI, added: “A major barrier to investments in access to energy in developing countries is the lack of working capital finance. ElectriFI is delighted to be supporting the off-grid energy sector in sub-Saharan Africa and providing catalytic finance that will help improve the conditions for mainstream investment in this underfunded sector”.
Viktor Andersson, Debt Portfolio Manager at TRINE, commented: “We are excited to be working with Azuri and ElectriFI on this scalable financing program, which enables our network of sophisticated investors, including family offices, to provide the financing support this fast-growing sector needs and deserves in order to maximise impact.”
About Azuri Technologies Ltd.
Azuri Technologies is a leading commercial provider of PayGo solar home systems to rural off-grid communities. With the widest reach of any provider in sub-Saharan Africa, Azuri is leveraging solar and mobile technology to allow users in 12 different countries to access renewable, distributed power on a pay-as-you-go basis. Azuri’s HQ is located in Cambridge, United Kingdom, with staff based in Kenya, Tanzania, Uganda, Zambia, and Nigeria.
For more information, please visit: www.azuri-technologies.com
The Electrification Financing Initiative (ElectriFI) is a flexible tool to unlock, accelerate and leverage investments to increase and improve access to affordable, reliable, sustainable and modern energy, by providing support throughout all stages of a project’s business cycle. It is an investment facility initiated by FMO, the Dutch Development Bank, and implemented by the EDFI Management Company, the fund manager of the Association of the European Development Finance Institutions (EDFI). ElectriFI is funded by the European Commission along with a USD 10mln contribution from Power Africa (targeting exclusively the sub-Saharan African region). ElectriFI provides a comprehensive and inclusive platform for investment support services, rendering due attention to bankability at very early stages, whilst facilitating access to senior debt at later stages.
For more information, please visit: www.electrifi.eu
TRINE is the leading digital investment platform that helps people find and invest in profitable solar energy campaigns in emerging markets. Investments enable the spread of solar energy by providing working capital to local solar energy companies, who are then able to offer affordable and reliable solar energy to local communities. TRINE brings solar energy to the 1.1 billion people in need of access to electricity and make it easy for people to make a social and environmental impact while also earning a return on their investment.
For more information, please visit: www.jointrine.com
Inquiry and contact information
Azuri Technologies Ltd.
+44 (0) 1223 228260