Off-Grid Solar and Financial Access Senior Debt Fund

Debt : October 2018 - December 2022

The Off-Grid Solar & Financial Access Senior Debt Fund I is a 4-year closed-end investment fund focused on Photovoltaic renewable energy solutions.

Amount

€ 4,385,750.00

Type of investment

Debt

Development impacts

Local economic growth
Access to basic services & goods
Fight against climate change

Beneficiary locations

Africa:

Asia:

Investment field

Investment Companies & Funds

Activity

KK.64.301 Infra Fund

Organisation

Off-Grid Solar and Financial Access Senior Debt Fund

Website

https://simafunds.com/fund-management/off-grid-solar-fund-i/

Domicile

The Netherlands

The Fund will provide senior debt financing to companies along the entire off grid solar value chain from design and engineering, over manufacturing, operations, national distribution and retailing, to solar product financiers (including Microfinance Institutions), all active across Sub-Saharan Africa and Asia. As opposed to PE funds, the Fund will lend money to companies instead of participating in the shareholdership.

The broad investment categories are:

Off-grid solar companies;
Microfinance institutions offering micro-financing schemes to funds Solar Home System acquisition.

Fund Manager

The fund is managed by Social Investment Managers and Advisors LLC (SIMA LLC) domiciled in Delaware (US). The SIMA team (8 professionals) has a combined experience in both the off-grid and financial access sectors. The team members have been engaged in those sectors for a long time. The team has local representation in Kenya and Pakistan to ascertain close proximity to their customers.

Development impacts

Local economic growth
Increase of disposable income of Base of Pyramid population (more cash available to spend on other necessities as SHS are cheaper than alternative energy sources such as kerosene lighting or candles);
Access to basic services & goods
Electricity and financing in an inclusive way: as the target group are Base of Pyramid customers in off-grid areas.

The Fund estimates to provide clean energy to over 1 million people / 250,000 homes;
Fight against climate change
The Fund estimates it will contribute to reduce CO2 emission by over 4M tonnes by replacing fossil fuel energy sources (mainly charcoal, diesel, and kerosene);