SunCulture, a photo voltaic irrigation firm headquartered in Nairobi, Kenya, has obtained the primary disbursement from a new US $11m syndicated debt facility to broaden its operations in sub-Saharan Africa.
The new mortgage is groundbreaking for the productive use photo voltaic sector due to its size and its innovative mixture of working capital and end-user financing.
Arranged by SunFunder, the co-investors in the facility are Nordic Development Fund; Triodos Investment Management, via its Hivos-Triodos Fund; SunFunder through 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 unwell mitigate over 20,000 tons of CO2 yearly as farmers substitute diesel pumps with solar ones while facilitating earnings development and job opportunities in rural communities.
SunCulture has pioneered a Pay-As-You-Gro business model to make solar-powered irrigation reasonably priced for smallholder farmers in sub-Saharan Africa, combining end-user finance, value-added providers, trendy climate know-how, and access to enhance productivity. pressure gauge 2.5 นิ้ว developed b Dalberg Research exhibits that irrigation systems and solar-powered water pumps can improve farmers manufacturing between 2 and four instances, and their income between 2 and 6 times.
READ: SunCulture to distribute solar-powered water pumps across Africa
Samir Ibrahim, Chief Executive Officer at SunCulture, stated: “The previous year 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, nevertheless, have been in a position to enhance their revenue from farming in 2020. Solar irrigation helps create meals security and sovereignty, and it additionally helps carry people out of poverty. This facility additional enables our efforts to assist farmers by providing them with more of our photo voltaic solutions, and quicker.”
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 nicely collectively for a typical goal: to help SunCulture reach man more farmers. It reveals how working capital could be combined with finish user financing, which is crucial for making productive use technologies reasonably priced.”
Surabhi Mathur Visser, Head of Investments at SunFunder, mentioned: This is a pioneering transaction that demonstrates how productive use applied sciences like photo voltaic irrigation can be scaled up. SunFunder arranged this facility with a similar-minded group of lenders to support an innovative product and business model. We look forward to seeing SunCulture develop in Kenya and ne markets.
Karin Isaksson, Managing Director at NDF, mentioned: “This mortgage 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 will deliver on the brand new NDF Strategy and its dedication to supply versatile and scalable financing in addition to catalytic impression. It has all of the elements that define NDFs added value in the climate financing panorama. It demonstrates our capability to convene and mobilise extra financing, in addition to our distinctive mi of financing instruments to match the wants of our companions, public or non-public. We are proud to be standing with our partners and supporting the emergence of a greener economy, exactly presently of COVID-19.
Since our first funding in 2019, SunCulture has made huge strides to unlock the potential of smallholder agriculture through innovative merchandise and consumer credit. FEI-OGEF is joyful to be able to refinance our inventor mortgage into this new working capital facility and continue that development alongside a committed and constructive group of lenders, famous Harr Guinness from Lions Head.
READ: SunCulture associate with Togo to hurry up entry to sustainable solar-powered farming
Judith Santbergen, Senior Investment Manager at AlphaMundi, mentioned: “Since 2018, AlphaMundi has successively supplied assist to SunCulture via a mixture of technical help and debt funding. We are excited to proceed and increase our investment in the firm via this new, progressive working capital facility.
Sjoerd Melsert, Senior Investment Manager at Triodos Investment Management, said: “SunCulture is a great instance of an revolutionary company that’s lively on the nexus of renewable energy and agriculture, using solar energy to increase farmers’ incomes. Our facility helps the further progress of SunCultures pay-as-you-go solar portfolio, resulting in a more sustainable and higher manufacturing for smallholder farmers, which is full aligned with the mission, ambition and actions of Hivos-Triodos Fund.”
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