d.light, a global leader in affordable affordable household products and financing for low-income households, has announced the closure of a new securitisation facility.
The facility will acquire receivables in the amounts of USD$176 million from Kenya, Tanzania, and Uganda.
African Frontier Capital, a social impact-focused asset management company, is providing new financing.
With the help of the facility, d.light plans to expand its PayGo consumer loan program and increase the number of low-income homes and communities without access to electricity that can purchase solar-powered items. Over the next three years, the multi-currency facility is expected to provide dependable, green energy access to six million people in the three countries.
Commenting on the news, d.light CEO Nedjip Tozun said, “This new facility is another landmark step in d.light’s mission to provide people with affordable energy that is also clean, safe and sustainable. It lets us expand our reach so that millions of off-grid families across Kenya, Tanzania and Uganda can experience the benefits of solar energy.
In sub-Saharan Africa, d.light has a track record of successfully utilising securitised financing to support its solar-powered household products. It has previously established four facilities, two in Kenya, one in Nigeria, and one in Tanzania, starting in 2020.
Since 2010, d.light has operated independently in Kenya since 2011, in Uganda since 2015, and in Tanzania since 2016. It has also collaborated with distribution partners in Kenya, Uganda, and Tanzania since 2010.
With the closing of this latest facility, d.light has now closed securitised financing totalling USD $718 million in purchase value across five different facilities since 2020.
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