Press release: OPIC Provides Initial Financing to SunFunder’s Solar Energy Transformation Fund to Expand Access to Beyond the Grid Solar
The Overseas Private Investment Corporation (OPIC), the U.S. Government’s development finance institution, has provided initial financing to SunFunder’s $85 million Solar Energy Transformation Fund which supports businesses providing solar solutions to some of the millions of people in Sub-Saharan Africa and India who lack access to electricity.
The financing is part of a $25 million commitment of senior and junior debt OPIC entered last September. Since OPIC committed financing, two other lenders have also committed loans, bringing the first close total raised to $42.5 million. This blended financing package includes $7.5 million from Calvert Impact Capital and $5 million from Ceniarth. The IKEA Foundation also provided a grant of $5 million as catalytic capital for the fund.
The Solar Energy Transformation Fund is one of a group of investment vehicles managed by SunFunder, a solar energy finance business with offices in the U.S., London and Nairobi working to scale up clean energy access in Africa and Asia by financing solar companies active in off-grid and weak-grid communities.
“This project will advance OPIC’s mission of empowering people in some of the world’s poorest countries by bringing affordable electricity to remote areas that are not connected to an electricity grid,” said Ray W. Washburne, OPIC President and CEO. “As we’ve seen from the additional financing raised, it is also a testament to OPIC’s ability to mobilize additional investment.”
SunFunder projects that the Solar Energy Transformation Fund will improve energy access for three million people and mitigate 480,000 tons of CO2 emissions annually over the nine year life of the fund. To date, SunFunder has deployed $65 million of debt financing to 46 solar borrowers in Africa and Asia.
“SunFunder has now closed over $100 million in diversified solar debt funds and the SET Fund opens up new opportunities. As our largest fund and with a 9-year tenor, the SET Fund increases both the range and size of debt capital offerings that we can provide, especially for productive use solutions and commercial projects,” said Ryan Levinson, SunFunder founder and CEO. “We’re grateful for the support from this investor group and pleased to be growing these long-standing relationships.”
OPIC’s support of this project advances several Agency priorities including the 2X Women’s Initiative, which supports women-owned and women-led businesses.
SunFunder was founded in 2012 by Ryan Levinson and Audrey Desiderato, with a commitment to provide financing for working capital, construction, inventory and structured finance loans to emerging market beyond the grid solar projects and companies.
By bringing electricity to some of the hardest to reach communities in Africa, these projects also advance the U.S. Power Africa initiative to bring electricity to more of the hundreds of millions of people in Sub-Saharan Africa who live without power.
OPIC previously committed financing to another SunFunder-managed fund, the Beyond the Grid Solar Fund, which has provided financing for off-grid companies in Africa, India, the Pacific Islands and Jordan. Calvert Impact Capital and Ceniarth also both invested in previous SunFunder debt funds.
“The IKEA Foundation is supporting SunFunder with a $5 million grant for its important work in serving the off-grid communities in East and West Africa and India because we believe that helping families access renewable energy will enable them to afford a better everyday life while also protecting the planet,” Jolanda van Ginkel, Renewable Energy Program Manager at IKEA Foundation.
“We’re excited to work with this group of lenders to meet SunFunder’s growing capital needs. Continuing to scale proven fund managers like SunFunder is critical to creating access to capital for local businesses that are leading the energy transformation,” said Jennifer Pryce, President and CEO of Calvert Impact Capital.
“Ceniarth has been an active energy access investor for the past four years and has monitored activity closely across the sector. SunFunder has grown into a sophisticated and responsible lender in a market that continues to have significant complexity, but critical impact. We are excited to invest alongside OPIC and Calvert Impact Capital in expanding the SET fund,” said Diane Isenberg, Founder and Director of Ceniarth.
Photo courtesy of Karsten Würth.
Source: Press release