Southern Africa: EDP and Persistent in recapitalisation of solar business
SolarWorks!, a key player in the off-grid renewable energy sector in Southern Africa, along with its leading investors EDP and Persistent, have finalised a recapitalisation of the business. This strategic move positions SolarWorks! for accelerated growth, bolstering its role as a broad energy service company in the region.
The recapitalisation of SolarWorks! involved an additional equity investment of $5.3 million from its existing shareholders, primarily EDP and Persistent. Moreover, the Energy Access Relief Fund, managed by SIMA Funds, participated in the recapitalisation process with loans totaling $2 million. The process also included the conversion to equity, write-off, and extension of maturity of $8.5 million of the company’s debt.
SolarWorks! operates in Mozambique and Malawi, selling solar systems on a PayGo basis to both residential and business customers. This encompasses larger 1-30kWp systems in Mozambique and Malawi, located in offices, tourist accommodations, and public buildings like clinics and schools.
Arnoud de Vroomen, CEO of SolarWorks!, said, “This recapitalisation places SolarWorks! in a great position to continue the growth that started in 2022 after the external factors of cyclone and pandemic were behind us. SolarWorks! has a strong balance sheet now with a very solid operation that balances renewable energy PayGo and cash businesses. We are very grateful to our shareholders and lenders to make this possible as it will result in thousands of businesses and families gaining access to energy in the coming years.”
Martim Salgado of EDP, SolarWorks!’s largest investor, added, “Through challenging times, SolarWorks! was able to deliver a strong track record of growth and positive impact in the communities where it operates. The conclusion of the debt restructuring reflects the confidence that EDP and other stakeholders have in SolarWorks!´s future. We are fully aligned with SolarWorks! commitment to promote access to energy and transforming lives.”
Chris Aidun of Persistent, which also acted as restructuring advisor to SolarWorks!, stated, “SolarWorks! is a great company that has suffered setbacks out of its control since 2019. The recapitalisation was a necessary solution to restore its health and preserve maximum value for all investors and the communities it serves. All stakeholders recognised this, which is what made the recapitalisation possible. The company is now in a position where it can grow and expand its footprint across Southern Africa.”