Johannesburg — Standard Bank Group, Citi, Norfund and CDC Group fund Greenlight Planet Kenya, leading solar energy business in Africa
The transaction is one of the first sustainability-linked deals in Kenya and strengthens the growing trend of syndicated sustainable finance deals in the region
ESG criteria incorporated into the facility to maximise Greenlight Planet’s impact across Africa and will contribute towards the United Nation’s SDG 7, on ensuring access to affordable, reliable, sustainable and modern energy for all
Standard Bank Group, Citi, CDC Group and Norfund have partnered to provide a USD75M equivalent KES denominated Sustainable Finance Facility for Greenlight Planet Kenya, Africa’s leader in off-grid solar home solutions.
The landmark facility is one of the first sustainability-linked deals in Kenya, and one of the largest syndicated sustainable finance deals in the region to be provided in local currency. The transaction will allow Greenlight Planet to expand access to off-grid solar solutions to off-grid communities throughout Kenya and support its ambitions to reach an additional 10 million households globally in the next 5 years by enabling households to afford “pay-as-you-go” solar home systems through digital financing.
The deal involved a high level of collaboration and important contributions from all parties. Citi served as the Sole Coordinator on the transaction, while Standard Bank acted as Sustainability Coordinator and executed the FX conversion to facilitate the repayment of the parent loan, in turn aiding local currency funding. The KES denominated loan will minimize Greenlight Planet’s exposure to currency exchange fluctuations, allowing the business to focus on growth, employment, and innovation. The deal also includes integrating three sustainability linked KPIs to the funding which covered both social and environmental metrics as follows: The number of people benefiting from reliable energy financing
Cumulative avoidance of CO2 emissions
Ensuring a gender balanced management team
As existing investors in Greenlight Planet, CDC Group and Norfund’s new round of investments aims to incorporate additional private sector capital and demonstrate the long-term viability of the off-grid solar sector, as well as enable the business to scale its operations in Kenya. Dentons acted as lender’s legal counsel on the deal and Power Africa provided legal support and advice to Greenlight Planet for this transaction, assisting with negotiation and review of financing and guarantee documents.
Greenlight Planet Kenya is a Group Company of Greenlight Planet Inc, a leading designer, distributor and financier of rooftop solar home systems for off-grid and weak-grid homes. […]