d.light, a global provider of household products and affordable finance solutions for low-income households, has announced the closure of a new securitization facility worth $176 million. This facility, financed by African Frontier Capital, will purchase receivables in Kenya, Tanzania, and Uganda, enabling d.light to scale its PayGo consumer finance offering and bring solar-powered products to more low-income households and communities without electricity.
Facility Details and Impact
– Purpose: The facility will be used to make solar-powered products accessible to an estimated six million people across Kenya, Tanzania, and Uganda over the next three years.
– Multi-Currency: The financing facility is multi-currency, which allows flexibility in financial operations across different countries.
– PayGo Model: d.light’s PayGo consumer financing model will enable low-income families to purchase solar home systems and high-efficiency appliances in an affordable and sustainable manner.
With this new facility, d.light has now secured a total of $718 million through five separate securitized financing facilities since 2020. These facilities have supported d.light’s operations in multiple countries, ensuring the company remains cash flow positive and reducing the need for further external equity fundraising.
Nedjip Tozun, CEO of d.light:
“This new facility is another landmark step in d.light’s mission to provide affordable, clean, safe, and sustainable energy to millions of off-grid families in East Africa. Facilities like this enable our pioneering PayGo consumer financing model, helping us expand our reach and improve lives.”
Eric De Moudt, Founder and CEO of African Frontier Capital
“This milestone demonstrates the significant role data-driven financial innovation can play in enhancing financial inclusion and providing access to clean energy. We are proud to support d.light’s visionary efforts in the off-grid solar sector.”
Track Record and Future Plans
– Previous Facilities: d.light has previously established four securitization facilities since 2020, including two in Kenya, one in Nigeria, and one in Tanzania.
– First Repayment Success: In February 2023, d.light’s $110 million securitization facility, Brighter Life Kenya 1 Limited (BLK1), successfully repaid its entire senior debt ahead of schedule from internally generated cash flows, marking a first in the off-grid solar sector.
– Future Growth: With the new facility, d.light aims to continue expanding its impact, remaining financially robust, and providing sustainable energy solutions to underserved communities.
d.light’s strategic financial initiatives and commitment to providing affordable solar energy are paving the way for significant social and economic benefits in sub-Saharan Africa, demonstrating the power of innovative financing in driving sustainable development.
