d.light and SFC announce $238m multi-currency receivable financing facility

Solar Frontier Capital (SFC), a wholly-owned subsidiary of African Frontier Capital (AFC), and d.light, a leading global innovator of solar-powered products for low-income families, have jointly announced the establishment of a US$238 million financing vehicle, Brighter Life Kenya 2 Limited (BLK2).

BLK2 is an off-balance sheet financing vehicle that provides d.light with flexible working capital, enabling the company to provide consumer financing and make its products universally available and affordable for customers, most of whom live below the poverty line and lack access to reliable power. The facility will finance a range of transformative products that drive quality-of-life improvements, from solar home systems to high-efficiency appliances and smartphones.

BLK2 has been structured to provide d.light with multi-currency financing (up to the equivalent of $238 million in face value of receivables) over a two-year commitment period, giving the company continued access to sustainable and affordable receivable financing for its Kenyan business with a plan to expand to other African countries in the near future.

BLK2 is being partially financed by a $62 million senior lending facility supported by U.S. International Development Finance Corporation (DFC), Norfund, responsAbility’s managed funds, and Oikocredit. AFC acts as the subordinated lender as well as the master servicer and back-up servicer under the transaction and, more generally, as sponsor of the structure.

Commenting on the announcement, d.light CEO Ned Tozun said, “Establishing a large, scalable, multi-currency financing facility will enable millions of families to transform their lives through access to products that were previously out of reach. This facility paves the way for a long-term sustainable business model to bring affordable and transformative technology products to customers who are unbanked and without access to electricity.”