SunCulture, a solar irrigation company headquartered in Nairobi, Kenya, has obtained the first disbursement from a new US $11m syndicated debt facility to expand its operations in sub-Saharan Africa.
The new mortgage is groundbreaking for the productive use photo voltaic sector as a outcome of its dimension and its progressive combination of working capital and end-user financing.
Arranged by SunFunder, the co-investors within the facility are Nordic Development Fund; Triodos Investment Management, by way of 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 enable SunCulture to scale up renewable energy installations at smallholder farms and households that sick mitigate over 20,000 tons of CO2 annually as farmers replace diesel pumps with solar ones while facilitating revenue development and job opportunities in rural communities.
SunCulture has pioneered a Pay-As-You-Gro enterprise mannequin to make solar-powered irrigation affordable for smallholder farmers in sub-Saharan Africa, combining end-user finance, value-added companies, modern climate expertise, and access to enhance productiveness. A current report developed b Dalberg Research reveals that irrigation methods and solar-powered water pumps can improve farmers production between 2 and 4 times, and their revenue between 2 and 6 times.
READ: SunCulture to distribute solar-powered water pumps throughout Africa
Samir Ibrahim, Chief Executive Officer at SunCulture, stated: “The previous 12 months was devastating for the hundreds of thousands of smallholder farmers in Kenya; 87% are in a worse financial position due to the pandemic. 81% of SunCulture farmers, nevertheless, had been capable of enhance their revenue from farming in 2020. Solar irrigation helps create food safety and sovereignty, and it additionally helps lift people out of poverty. This facility additional permits our efforts to support farmers by providing them with extra of our photo voltaic solutions, and quicker.”
เครื่องมือวัดความดัน -Fosu, Investment Officer, who led the transaction for SunFunder, said: “We are delighted to have led this syndicate of proactive lenders who labored well together for a standard objective: to assist SunCulture reach man more farmers. It reveals how working capital can be mixed with end person financing, which is important for making productive use technologies reasonably priced.”
Surabhi Mathur Visser, Head of Investments at SunFunder, stated: This is a pioneering transaction that demonstrates how productive use applied sciences like solar irrigation can be scaled up. SunFunder organized this facility with a similar-minded group of lenders to help an revolutionary product and business mannequin. We look ahead to seeing SunCulture develop in Kenya and ne markets.
Karin Isaksson, Managing Director at NDF, mentioned: “This mortgage to SunCulture is the second extended to an organization graduating from the EEP Trust Fund managed by NDF. It is a transparent demonstration that we are ready to deliver on the model new NDF Strategy and its commitment to provide versatile and scalable financing in addition to catalytic influence. It has all the components that outline NDFs added value within the climate financing landscape. It demonstrates our capability to convene and mobilise additional financing, as well as our distinctive mi of financing devices to match the needs of our partners, public or personal. We are proud to be standing with our partners and supporting the emergence of a greener economic system, precisely right now of COVID-19.
Since our first funding in 2019, SunCulture has made big strides to unlock the potential of smallholder agriculture through revolutionary merchandise and client credit. FEI-OGEF is joyful to find a way to refinance our inventor loan 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 partner with Togo to hurry up access to sustainable solar-powered farming
Judith Santbergen, Senior Investment Manager at AlphaMundi, stated: “Since 2018, AlphaMundi has successively provided assist to SunCulture through a combination of technical help and debt funding. We are excited to proceed and enhance our funding within the firm through this new, progressive working capital facility.
Sjoerd Melsert, Senior Investment Manager at Triodos Investment Management, stated: “SunCulture is a good instance of an innovative firm that’s energetic on the nexus of renewable vitality and agriculture, using solar energy to extend farmers’ incomes. Our facility helps the further growth of SunCultures pay-as-you-go solar portfolio, resulting in a extra sustainable and better manufacturing for smallholder farmers, which is full aligned with the mission, ambition and activities of Hivos-Triodos Fund.”
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