d.light, the global provider of transformational household products and affordable finance for low-income households, has announced the closing of a new securitization facility that will purchase USD$176 million of receivables in Kenya, Tanzania and Uganda.

The new financing is being provided by social impact-focused asset management company African Frontier Capital.

d.light will use the facility to scale up its PayGo consumer finance offering to make solar-powered products available to more low-income households and communities without access to electricity.

The facility is multi-currency and will enable access to reliable, renewable energy for an estimated six million people across the three countries over the next three years.

With this new facility, d.light has now closed securitized financing with a total combined purchasing value of USD$718 million across five separate facilities since 2020.

Commenting on the news, d.light CEO Nedjip Tozun said, “This new facility is another landmark step in d.light’s mission to provide people with affordable energy that is also clean, safe and sustainable.

“It lets us expand our reach so that millions of off-grid families across Kenya, Tanzania and Uganda can experience the benefits of solar energy.

“Facilities like this make possible our pioneering PayGo consumer financing model with which we can offer solar home systems and high-efficiency appliances to the people that need them most in a way that is affordable and sustainable.”

Tozun continued, “With this new facility, d.light has for the first time in its history receivables-based financing facilities in each of our PayGo markets – Kenya, Uganda, Tanzania, and Nigeria.

These facilities allow d.light to remain consistently cash flow positive and remove the requirement for further external equity fundraising to fund our growth.”

Eric De Moudt, AFC’s founder and CEO, said, “This milestone is a testament to how data-driven financial innovation can play an important role in bringing financial inclusion to the world’s most vulnerable communities, helping them to gain access to clean and modern energy and the ensuing social and economic benefits that come about as a result. We are grateful to d.light for its ongoing leadership in the off-grid solar sector and proud to partner with such a visionary company.”

Mohammed Mane
Follow me

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.