Press Release: D.light and SFC Announce Industry-Leading USD $238 Million Multi-Currency Receivable Financing Facility
Solar Frontier Capital Limited (SFC), a wholly-owned subsidiary of African Frontier Capital (Mauritius) LLC (AFC), and d.light design Inc. (d.light), a leading global innovator of solarpowered transformational products for low-income families, have jointly announced the establishment of a USD 238 million financing vehicle, Brighter Life Kenya 2 Limited (BLK2).
BLK2 is an off-balance sheet financing vehicle that provides d.light with flexible working capital, enabling the company to provide consumer financing and make its products universally available and affordable for customers, most of whom live below the poverty line and lack access to reliable power. The facility will finance a range of transformative products that drive quality-of-life improvements, from solar home systems to high-efficiency appliances and smartphones. BLK2 is the largest off-balance-sheet facility in the industry thus far, and comes on the heels of d.light celebrating 125 million lives impacted globally.
BLK 2has been structured to provide d.light with multi-currency financing (up to the equivalent of USD 238 million in face value of receivables) over a two-year commitment period, giving the company continued access to sustainable and affordable receivable financing for its Kenyan business with a plan to expand to other African countries in the near future. The structure is expected to directly impact over 2.8 million lives including the over 1.9 million people with improved access to clean and modern energy who, together, will reduce over 600,000 metric tons of CO2 emissions1 .
BLK2 is being partially financed by a USD 62 million senior lending facility supported by U. S. International Development Finance Corporation (DFC), Norfund, responsAbility’s managed Funds, and Oikocredit. AFC acts asthe subordinated lender as well asthe masterservicer and back-up servicer under the transaction and, more generally, as sponsor of the structure.