Oikocredit Invests $7 Million In Solarise Africa To Support Affordable Solar Access For Businesses In Africa
Oikocredit Invests $7 Million In Solarise Africa To Support Affordable Solar Access For Businesses In Africa. Oikocredit has partnered with Lion’s Head Group-managed funds, the Facility for Energy Inclusion (FEI) and AfricaGoGreen (AGG), to invest US$ 7 million in a US$ 33.4 million multi-currency loan facility to support Solarise Africa’s growing provision of affordable commercial and industrial solar installations in Africa.
With this investment Solarise Africa will offer more solar installations and energy efficiency solutions to small and medium enterprises (SMEs) and other businesses in multiple African countries, contributing to job creation, financial savings and CO2 reduction. FEI acted as the lead arranger for the loan, investing US$ 21.4 million, followed by Oikocredit with US$ 7 million and AGG with US$ 5 million. This deal continues Oikocredit’s commitment to C&I solar transactions, which are crucial in meeting global climate targets.
Dhriti Bhatta, Renewable Energy Investment Officer at Oikocredit, said: “We are delighted to support Solarise Africa in partnership with FEI and AGG in scaling up its C&I solar and energy efficiency solutions. Solarise is creating a much-needed demonstration effect among SMEs and other businesses of the benefits of affordable solar and is increasing their financial resilience with savings. We look forward to a long-term partnership.”
Orli Arav, Head of Debt Funds at Lion’s Head Group, said: “FEI as lead arranger is proud to have partnered with Oikocredit and AGG on this transaction to support the growth of Solarise Africa’s C&I portfolio. This multi-country loan will allow Solarise Africa to solidify its position in the commercial and industrial solar market in Kenya, expand its activities and increase its footprint in other countries in Africa.”
Jan Albert Valk, CEO and Co-founder at Solarise Africa, said: “We are very honoured and grateful for the confidence the investors have shown in us. As the largest debt raise in Africa’s C&I space to date, this proves that Solarise Africa has a solid business model. We are proud to welcome these three prestigious new investors – FEI, Oikocredit and AGG – to our current group of investors. Throughout 2022, we have significantly grown our footprint and portfolio, and with this new loan we will be able to catapult our efforts to advance renewable energy adoption for SMEs in Africa.”
