SunCulture, a photo voltaic irrigation firm headquartered in Nairobi, Kenya, has received the first disbursement from a new US $11m syndicated debt facility to expand its operations in sub-Saharan Africa.
The new loan is groundbreaking for the productive use photo voltaic sector because of its measurement 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, via its Hivos-Triodos Fund; SunFunder via its Solar Energy Transformation Fund; AlphaMundi through 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 ill mitigate over 20,000 tons of CO2 annually as farmers substitute diesel pumps with solar ones while facilitating revenue growth and job alternatives 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 companies, modern local weather technology, and entry to enhance productivity. A recent report developed b Dalberg Research shows that irrigation systems and solar-powered water pumps can improve farmers manufacturing between 2 and 4 instances, and their earnings 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 12 months was devastating for the tens of millions of smallholder farmers in Kenya; 87% are in a worse monetary position as a outcome of pandemic. 81% of SunCulture farmers, nevertheless, had been able to enhance their income from farming in 2020. Solar irrigation helps create meals security and sovereignty, and it additionally helps raise folks out of poverty. This facility further permits our efforts to support farmers by providing them with more of our solar solutions, 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 nicely collectively for a typical objective: to help SunCulture reach man more farmers. It exhibits how working capital can be mixed with finish person financing, which is crucial for making productive use applied sciences inexpensive.”
Surabhi Mathur Visser, Head of Investments at SunFunder, said: This is a pioneering transaction that demonstrates how productive use technologies like photo voltaic irrigation could be scaled up. SunFunder arranged this facility with a similar-minded group of lenders to assist an progressive product and enterprise model. We look ahead to seeing SunCulture grow in Kenya and ne markets.
Karin Isaksson, Managing Director at NDF, said: “This mortgage 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 will deliver on the model new NDF Strategy and its dedication to supply versatile and scalable financing in addition to catalytic influence. It has all 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 needs of our partners, public or private. We are proud to be standing with our companions and supporting the emergence of a greener financial system, exactly presently of COVID-19.
Since เกจวัดแรง in 2019, SunCulture has made big strides to unlock the potential of smallholder agriculture via progressive products and consumer credit score. FEI-OGEF is pleased to have the ability to refinance our inventor mortgage into this new working capital facility and proceed that growth alongside a dedicated and constructive group of lenders, famous Harr Guinness from Lions Head.
READ: SunCulture companion with Togo to speed up entry to sustainable solar-powered farming
Judith Santbergen, Senior Investment Manager at AlphaMundi, said: “Since 2018, AlphaMundi has successively provided help to SunCulture through a mixture of technical help and debt investment. We are excited to continue and enhance our funding in the firm through this new, revolutionary working capital facility.
Sjoerd Melsert, Senior Investment Manager at Triodos Investment Management, said: “SunCulture is a good example of an progressive firm that is lively on the nexus of renewable energy and agriculture, utilizing photo voltaic vitality to extend farmers’ incomes. Our facility helps the further development of SunCultures pay-as-you-go photo voltaic portfolio, leading to a extra sustainable and higher production for smallholder farmers, which is full aligned with the mission, ambition and activities of Hivos-Triodos Fund.”
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