Beyond The Grid Solar Fund (BTGSF)

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BTGSF will provide loans to solar companies active in the off-grid / grid-deficit space (mainly across Sub-Saharan Africa). Borrowers of the BTGSF will include solar product distributors, PAYGO (pay-as-you-go) solar home system (SHS) companies and solar project developers. One of the barriers currently faced by these companies is lack of access to debt finance, which is critical to achieve growth and scale. BTGSF’s loans are aimed at solar companies with positive track record (generally 3-years) that are not able to access

1. commercial bank loans given their stringent conditions e.g. regarding the type of collaterals or

2. DFI funding considering the size of the requested loans (too small).

Development impacts

  • Local economic growth and access to basic services:  via the business model of the PAYGO Solar Home System companies, financial access to Base of Pyramid customers is provided. Also Solar Home Systems imply a lower cost for the client compared to what they spend on kerosene / candles, their disposable income increases. Access to funding for SMEs is ensured.
  • Fight against climate change via the provision of solar electricity (on and off-grid) for both industrial & commercial clients and households.
  • Private sector innovation/structuring: the structuring capacity of the fund team and the innovative financing products will make the market more mature. The fund structure is on the one hand an important financial intermediary to collect impact-driven capital from commercial investors, and at the other hand a necessary player for the investee companies in need of debt financing (small loans, uncollateralised, etc.)
  • Promotion of ESG aspects: Sun Funder has prepared an action plan for implementing their E&S and CPP policies into the lending process. Waste management will get special attention.

https://sunfunder.com/ 

  • Investment amount (€):

    € 4.74 M

  • Contract signature :

    2017

  • Nature of intervention :

    Debt

  • Development impacts :

    • 1 — Local economic growth
    • 2 — Financial inclusion
    • 3 — Access to basic services and goods
    • 4 — Fight against climate change and preservation of natural resources