SunCulture, a photo voltaic irrigation company headquartered in Nairobi, Kenya, has received the first disbursement from a model new US $11m syndicated debt facility to increase its operations in sub-Saharan Africa.
The new loan is groundbreaking for the productive use photo voltaic sector due to its dimension and its innovative mixture of working capital and end-user financing.
Arranged by SunFunder, the co-investors within the facility are Nordic Development Fund; Triodos Investment Management, through its Hivos-Triodos Fund; SunFunder through its Solar Energy Transformation Fund; AlphaMundi via 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 unwell mitigate over 20,000 tons of CO2 yearly as farmers replace diesel pumps with solar ones whilst facilitating earnings progress 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 services, fashionable climate expertise, and entry to improve productivity. A recent report developed b Dalberg Research exhibits that irrigation systems and solar-powered water pumps can increase farmers manufacturing between 2 and four instances, and their income between 2 and 6 times.
READ: SunCulture to distribute solar-powered water pumps throughout Africa
Samir Ibrahim, Chief Executive Officer at SunCulture, said: “The previous yr was devastating for the tens of millions of smallholder farmers in Kenya; 87% are in a worse monetary place as a outcome of pandemic. 81% of SunCulture farmers, nonetheless, were in a position to improve their revenue from farming in 2020. Solar irrigation helps create meals safety and sovereignty, and it also helps carry individuals out of poverty. This facility additional enables our efforts to help farmers by providing them with more of our photo voltaic options, and sooner.”
Jemimah Kwakye-Fosu, Investment Officer, who led the transaction for SunFunder, mentioned: “We are delighted to have led this syndicate of proactive lenders who worked properly collectively for a common objective: to assist SunCulture reach man extra farmers. It exhibits how working capital may be combined with finish person financing, which is important for making productive use technologies affordable.”
Surabhi Mathur Visser, Head of Investments at SunFunder, mentioned: This is a pioneering transaction that demonstrates how productive use technologies like solar irrigation can be scaled up. SunFunder organized this facility with a similar-minded group of lenders to help an progressive product and enterprise mannequin. We look forward 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 a company graduating from the EEP Trust Fund managed by NDF. It is a clear demonstration that we are ready to ship on the model new NDF Strategy and its commitment to provide versatile and scalable financing as nicely as catalytic impact. It has all of the elements that define NDFs added value in the local weather financing panorama. It demonstrates our capability to convene and mobilise further financing, as properly as our distinctive mi of financing instruments to match the needs of our companions, public or personal. 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 our first investment in 2019, SunCulture has made large strides to unlock the potential of smallholder agriculture through revolutionary merchandise and shopper credit. FEI-OGEF is happy to have the flexibility to refinance our inventor loan into this new working capital facility and proceed that growth alongside a committed and constructive group of lenders, noted Harr Guinness from Lions Head.
READ: SunCulture associate with Togo to speed up entry to sustainable solar-powered farming
Judith Santbergen, Senior Investment Manager at AlphaMundi, mentioned: “Since 2018, AlphaMundi has successively supplied support to SunCulture by way of a mixture of technical assistance and debt investment. We are excited to proceed and enhance our funding within the firm via this new, progressive working capital facility.
Sjoerd Melsert, Senior Investment Manager at Triodos Investment Management, stated: “SunCulture is a good instance of an revolutionary company that’s energetic on the nexus of renewable vitality and agriculture, utilizing solar energy to extend farmers’ incomes. เกจวัดแรงดัน250bar helps the additional growth of SunCultures pay-as-you-go solar portfolio, leading to a more sustainable and better manufacturing for smallholder farmers, which is full aligned with the mission, ambition and actions of Hivos-Triodos Fund.”
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