SunCulture, a solar irrigation firm headquartered in Nairobi, Kenya, has obtained the first disbursement from a brand new US $11m syndicated debt facility to broaden its operations in sub-Saharan Africa.
The new loan is groundbreaking for the productive use photo voltaic sector due to its size and its innovative combination of working capital and end-user financing.
Arranged by SunFunder, the co-investors in the facility are Nordic Development Fund; Triodos Investment Management, by way of its Hivos-Triodos Fund; SunFunder via its Solar Energy Transformation Fund; AlphaMundi by way of both its SocialAlpha and AlphaJiri Investment Funds; and the AfDB’s FEI OGEF managed b Lions Head.
This will allow SunCulture to scale up renewable power installations at smallholder farms and households that sick mitigate over 20,000 tons of CO2 yearly as farmers exchange diesel pumps with solar ones while facilitating income growth and job opportunities in rural communities.
SunCulture has pioneered a Pay-As-You-Gro enterprise model to make solar-powered irrigation reasonably priced for smallholder farmers in sub-Saharan Africa, combining end-user finance, value-added companies, fashionable climate know-how, and access to enhance productivity. A latest report developed b Dalberg Research exhibits that irrigation methods and solar-powered water pumps can enhance farmers production between 2 and four instances, and their earnings between 2 and 6 times.
READ: SunCulture to distribute solar-powered water pumps throughout Africa
Samir Ibrahim, Chief Executive Officer at SunCulture, said: “The past year was devastating for the millions of smallholder farmers in Kenya; 87% are in a worse financial place due to the pandemic. 81% of SunCulture farmers, nevertheless, have been capable of enhance their revenue from farming in 2020. Solar irrigation helps create meals safety and sovereignty, and it additionally helps carry people out of poverty. This facility further allows our efforts to help farmers by offering them with more of our solar options, and sooner.”
Jemimah Kwakye-Fosu, Investment Officer, who led the transaction for SunFunder, said: “We are delighted to have led this syndicate of proactive lenders who worked well together for a common objective: to assist SunCulture reach man more farmers. It exhibits how working capital may be mixed with finish person financing, which is crucial for making productive use technologies reasonably priced.”
Surabhi Mathur Visser, Head of Investments at SunFunder, stated: This is a pioneering transaction that demonstrates how productive use applied sciences like solar irrigation can be scaled up. SunFunder organized this facility with a similar-minded group of lenders to assist an innovative product and business model. We look ahead to seeing SunCulture grow in Kenya and ne markets.
Karin Isaksson, Managing Director at NDF, stated: “This loan to SunCulture is the second prolonged to an organization graduating from the EEP Trust Fund managed by NDF. It is a clear demonstration that we can deliver on the model new NDF Strategy and its commitment to offer flexible and scalable financing as properly as catalytic influence. It has all of the ingredients that outline NDFs added value within the climate financing landscape. It demonstrates our capability to convene and mobilise extra financing, as nicely as our distinctive mi of financing devices to match the wants of our partners, public or private. We are proud to be standing with our companions and supporting the emergence of a greener financial system, precisely right now of COVID-19.
Since ราคาเกจวัดแรงดันน้ำ in 2019, SunCulture has made huge strides to unlock the potential of smallholder agriculture through innovative merchandise and client credit score. FEI-OGEF is joyful to have the ability to refinance our inventor mortgage into this new working capital facility and proceed that progress alongside a committed and constructive group of lenders, famous Harr Guinness from Lions Head.
READ: SunCulture partner with Togo to speed up access to sustainable solar-powered farming
Judith Santbergen, Senior Investment Manager at AlphaMundi, mentioned: “Since 2018, AlphaMundi has successively provided help to SunCulture by way of a mix of technical assistance and debt funding. We are excited to continue and enhance our investment in the company via this new, revolutionary working capital facility.
Sjoerd Melsert, Senior Investment Manager at Triodos Investment Management, said: “SunCulture is a superb instance of an progressive firm that is lively on the nexus of renewable energy and agriculture, utilizing photo voltaic power to increase farmers’ incomes. Our facility helps the further growth of SunCultures pay-as-you-go solar portfolio, leading to a more sustainable and higher production for smallholder farmers, which is full aligned with the mission, ambition and activities of Hivos-Triodos Fund.”
Share