SolarNow Receives $6 Million in Financing
According to the company, the $6 million facility will serve as SolarNow’s second structured asset finance instrument, known as SAFI, which SunFunder has arranged for SolarNow. SAFI is a bankruptcy-remote special purpose vehicle that is designed to finance customer receivables for off-grid residential solar companies. This enables these solar companies to expand their pay-as-you-go or solar lease offerings to more people who are currently living without access to energy.
SolarNow and SunFunder have already completed five transactions together that have tracked the growth of the sector. SunFunder acted as the arranger, lender, and facility agent for the $6 million facility, and each lender provided the facility with $2 million. Although this is SolarNow’s second SAFI transaction, it represents the first syndicated SAFI in the market.
“Our customers need more scalable, less time-consuming financing options so they can focus on their core business delivering solar energy. By leading syndications, SunFunder offers solar companies larger ticket size loans with less hassle, and gives investors a route into the market,” said Ryan Levinson, chief executive officer of SunFunder.
“We are thrilled to continue building our fruitful relationship with SunFunder. So far, it has allowed us to focus entirely on our growth and profitability reaching more than 25,000 clients. This new step of our partnership will enable us to continue tackling the massive unmet market opportunity in East Africa of providing affordable energy to millions of off-grid households, and to reach 70 percent of Uganda’s off-grid population with solar home systems,” said Willem Nolens, chief executive officer of SolarNow.
“We see SolarNow as a company that prioritizes its customers in order to meet their needs with the right solar products and services,” said Maite Pina, Investment Officer at Oikocredit. Solarnow has 55 branches and 750 staff in Uganda and Kenya.
Image credit: SolarNow