Off-Grid Solar Firm PEG Africa completes US$13.5 million fundraise
PEG Africa, the leading off-grid solar company in West Africa, is pleased to announce it has successfully raised US$13.5 million through a combination of debt and a Series B equity financing. The proceeds will be used to accelerate growth in Ghana and Ivory Coast, where PEG is already a sector leader, to reach 500,000 people.
PEG provides loans for solar home systems and other useful assets to off-grid households in West Africa. PEG is able to offer loans to off-grid customers earning $5-$10 per day, who are often rural and considered risky by banks and microfinance, using ‘pay-as-you-go’ technology. This technology allows PEG to control assets remotely in the field while they are being repaid by customers. Importantly, by allowing customers to pay over time in small increments, PEG is able to reach many customers who would not otherwise be able to afford such life-changing products.
Hugh Whalan, CEO of PEG Africa, commented: “With this funding, PEG Africa will be able to reach a major milestone of extending energy and financing to half a million people. We are excited that we can now accelerate our growth plans in key West African markets. It is testament to the quality of the opportunity that all previous investors have participated in the Series B equity financing.”
PEG raises industry-first syndicated multi-currency loan in West Africa
PEG worked with SunFunder on a large multi-currency syndicated loan – an industry first – with participation from six lenders, including SunFunder, ResponsAbility, Oikocredit, Global Partnerships and Palladium Impact Investments. The transaction was advised by Nixon Peabody LLP.
Audrey Desiderato, COO of SunFunder, commented: “We have seen PEG Africa achieve major milestones in the last few years. By structuring and arranging this syndication on PEG’s behalf, we have provided scalable financing so they can focus on their core business.”
PEG raises Series B financing, bringing total funding raised to over $21M USD
PEG’s Series B was led by Blue Haven Initiative, with participation from Energy Access Ventures, Investisseurs & Partenaires (via IPAE 1 fund), ENGIE Rassembleurs d’Energies, Acumen and PCG Investments.
Lauren Cochran, Managing Director at Blue Haven Initiative, commented: “We are big believers in the potential for consumer finance and off-grid energy across Sub Saharan Africa. PEG are the team to back in West Africa and we are thrilled to be a part of their growing company.”
About PEG Africa
PEG Africa is the leading company in West Africa providing asset-based financing for solar and other useful assets to consumers who lack both access to reliable electricity and formal banking services. PEG’s anchor product, a basic solar home system that includes three lights, a phone charger, and a radio, allows consumers living on $5-10 per day to access clean light for working and studying after hours, avoid harmful air pollution from kerosene based lighting solutions, and also build credit for additional products and services over time. PEG has 300 full time staff, and reaches close to 200,000 people at present.