The Eastern and Southern African Trade and Development Bank (TDB) has closed a USD 4.2 Million transaction with Sunspot Energy Kenya Limited (operating as Spark Possibilities), to finance new solar home systems in Kenya.
The financing will enable Spark Possibilities to offer an expanded range of solar energy solutions to more households in Kenya and to enter other markets in Sub-Saharan Africa.
This deal is supported by TDB’s USD 75 million SME Off-Grid Facility, in turn supported by a USD 415 million World Bank Regional Infrastructure Finance Facility (RIFF) signed with TDB in 2020 – the first of its kind to be extended to a regional development bank by the World Bank’s International Development Association (IDA). Through this facility, TDB finances long-term infrastructure projects, particularly in renewable energy, including those of micro, small and medium enterprises (MSMEs) in need of debt financing.
Founded in 2016, Sunspot Energy Kenya Limited provides affordable and reliable pay-as-you-go (PayG) solar home systems to customers in rural and semi-rural communities in Kenya. Sunspot has scaled-up principally through private sector funding and operates across 12 Kenyan communities.
“With 25% of the Kenyan population still lacking access to electricity and almost 30% in rural areas, we are excited to finance Spark Possibilities to build more solar home systems, enabling those who need it the most to run their businesses, study, and improve their living standards overall.” notedAdmassu Tadesse, TDB President Emeritus and Group Managing Director.
“Via this transaction, we look forward to working together to contribute to further driving triple bottom-line impact in our region.” said Michael Awori, TDB Deputy CEO and COO.
“This financing marks a new chapter,” commented Hal Peters, CEO and Co-Founder of Sunspot Energy Kenya Limited. “Having TDB as a long-term partner further raises the bar for our young company, which plans to not only grow its Kenyan footprint but also expand into new Sub-Saharan countries in 2022. With this transaction, TDB has visibly demonstrated its expertise to create an innovative, bespoke debt structure. Clearly understanding prospective financial capacity along the company’s growth path is significant – TDB has great team, and we are delighted that they are our financial partner.”
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