Off-Grid Solar and Financial Access Senior Debt Fund

Debt : October 2018

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 and preservation of natural resources

Beneficiary locations

Asia:
Sub-Saharan Africa:

Investment field

Investment Companies & Funds

Activity

Renewable Energy

Organisation

Off-Grid Solar and Financial Access Senior Debt Fund

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:

  1. Off-grid solar companies;
  2. 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 and preservation of natural resources

    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);

Made possible through this investment

Thanks to the direct funding from BIO, the following second-line investments have been made possible.

d.light

azuri

PremierCredit

Questworks

Rural Community Development Programmes

FFO Support Program

Satya MicroCapital Ltd

Light Microfinance

pawame

SupaMoto

SolarGen

BioLite

LAPO Microfinance

Thardeep

musoni

Sumac Microfinance Bank

AGAHE

ecoenergy

Bboxx

OPES Solutions

M-KOPA Solar

ARESS

Sun King

Solar Now