Nairobi/ Dar Es Salam, 14 August 2023 – The Eastern and Southern African Trade and Development Bank (TDB) Group is extending USD 30 million under a securitization structure that will mobilize USD125 million in funding for d.light to expand access to clean energy and foster financial inclusion through the delivery of Solar Home System (SHS) products and mobile phones to off-grid customers in Tanzania.
The new facility follows a previous USD 50 million on balance sheet loan to d.light extended in 2021, where TDB served as co-mandated lead arranger.
Since its founding in 2006, d.light has sold over 30 million products encompassing solar lanterns, solar home systems, TVs, radios and smartphones, which have impacted the lives of over 150 million people and helped offset 32 million tons of CO2. In Africa, d.light is one of the largest players with a significant market share in the SHS space. To enhance product affordability and access, d.light uses Pay-As-You-Go (PAYGO) technology.
Under the proposed facility, an estimated 150,000 households will gain access to clean energy, with a direct impact on economic and social development. Furthermore, larger tier solar home systems enable the productive use of energy, particularly in agriculture and domestic activities, so that more time can be saved and reallocated, especially for women.
Michael Awori, TDB CEO said “Access to energy is critical to the sustainable development of the continent, especially for the most vulnerable off-grid communities. As one of the leading renewable energy financiers in the region, we are delighted to extend this second facility to d.light, this time in Tanzania. Globally, in 2022 alone the company reached over 1,677,216 people through PAY-GO model, created close to 2,000 jobs, and averted 1,329,371 tons of CO2 and black carbon emissions with solar replacing kerosene lamps. This is the kind of impactful track record TDB is keen to support.”
d.light CEO Nick Imudia said, “This new financing from TDB gives us the extra funding to reach more low-income families and households in Tanzania via our Pay-Go business, in a way that is affordable for our customers and sustainable for our business. d.light and our lending partners are long-time pioneers in developing securitized finance as an innovative, scalable financing model for raising equity for off-grid solar that is guaranteed against current and future customer sales.”
Eric De Moudt, founder and CERO of AFC remarked “We are very happy to announce the launch of our latest social impact securitization, BLT1, which further expands our industry leading off-balance sheet securitization structures into new jurisdiction for d.light and brings the total volume of local currency receivable being financed to almost USD 500 million”.
TDB is active in the energy transition in the region it serves, by contributing short-term energy security needs while financing long-term renewable energy projects, in geothermal, wind, solar and hydro, including in Tanzania. Off-grid solar energy projects have proven to create significant environmental impact, while contributing to critical outcomes such as access to electricity, job creation, economic growth, increased health benefits, and more, with this transaction contributing to realisation of multiple SDGs.
Established in 1985, the Eastern and Southern African Trade and Development Bank (TDB) is a regional development finance institution with investment-grade ratings and assets totaling USD 8.4 billion. TDB serves 25 economies in its region, with the mandate to finance and foster trade, regional economic integration, and sustainable development.
TDB is part of TDB Group, which also comprises the Trade and Development Fund (TDF), Eastern and Southern African Trade Advisers Limited (ESATAL), TDB Captive Insurance Company (TCI), and the TDB Academy.
Founded in 2007 at Stanford in California, d.light is a global leader in making transformative products available and affordable to low-income families. d.light has sold nearly 30 million products, including solar lanterns, solar home systems, TVs, radios, and smartphones, impacting the lives of over 150 million people. Our vision is to transform the lives of one billion people with sustainable products by 2030. For further information, visit: https://www.dlight.com
African Frontier Capital (Mauritius) LLC and its subsidiary companies are a dedicated impact investment group focused on bringing financial inclusion to people living at the bottom of the pyramid in a socially and environmentally sustainable way. For more information visit www.africanfrontiercapital.com or you can reach out to us on email@example.com.