d.light, a global leader in providing products and finance for low-income households, announced the closing of a securitization facility worth $176 million. The financing, provided by African Frontier Capital (AFC), will purchase receivables in Kenya, Tanzania, and Uganda.
This facility will enable d.light to scale its PayGo consumer finance offering, increasing the availability of solar-powered products to more low-income households and communities without access to electricity. The multi-currency facility is expected to bring reliable, renewable energy to an estimated six million people across the three countries over the next three years.
“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,” said d.light CEO Nedjip Tozun. “It allows us to expand our reach so that millions of off-grid families across Kenya, Tanzania, and Uganda can experience the benefits of solar energy.”
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 external equity fundraising to fund its growth.
Since 2020, d.light has closed securitized financing with a total combined purchasing value of $718 million across five separate facilities. The company has a proven track record in using securitized finance to support its solar-powered household products in sub-Saharan Africa. This new facility adds to previous ones set up in Kenya, Nigeria, and Tanzania.
Earlier this year, d.light’s $110 million securitization facility, Brighter Life Kenya 1 (BLK1), repaid its entire senior debt ahead of schedule from internally generated cash flows – the first facility in the off-grid solar sector to do so.
GreentechLead.com News Desk