SunCulture, a solar irrigation firm headquartered in Nairobi, Kenya, has obtained the primary disbursement from a model new US $11m syndicated debt facility to broaden its operations in sub-Saharan Africa.
The new mortgage is groundbreaking for the productive use photo voltaic sector as a result of its dimension and its revolutionary combination of working capital and end-user financing.
Arranged by SunFunder, the co-investors in the facility are Nordic Development Fund; Triodos Investment Management, through its Hivos-Triodos Fund; SunFunder by way of its Solar Energy Transformation Fund; AlphaMundi through each its SocialAlpha and AlphaJiri Investment Funds; and the AfDB’s FEI OGEF managed b Lions Head.
This will allow SunCulture to scale up renewable vitality installations at smallholder farms and households that sick mitigate over 20,000 tons of CO2 yearly as farmers exchange diesel pumps with solar ones while facilitating revenue growth and job opportunities in rural communities.
SunCulture has pioneered a Pay-As-You-Gro enterprise model to make solar-powered irrigation affordable for smallholder farmers in sub-Saharan Africa, combining end-user finance, value-added companies, trendy climate technology, and access to enhance productivity. A latest report developed b Dalberg Research shows that irrigation systems and solar-powered water pumps can increase farmers manufacturing between 2 and 4 occasions, and their income 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 financial place because of the pandemic. 81% of SunCulture farmers, nevertheless, have been in a place to enhance their income from farming in 2020. Solar irrigation helps create meals safety and sovereignty, and it also helps lift people out of poverty. This facility further permits our efforts to assist farmers by offering them with more of our photo voltaic solutions, and quicker.”
Jemimah Kwakye-Fosu, Investment Officer, who led the transaction for SunFunder, said: “We are delighted to have led this syndicate of proactive lenders who labored well collectively for a typical goal: to help SunCulture attain man extra farmers. It shows how working capital may be combined with end consumer financing, which is essential for making productive use applied sciences affordable.”
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 เกจวัดแรงดัน4นิ้วราคา 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, stated: “This loan to SunCulture is the second extended to a company graduating from the EEP Trust Fund managed by NDF. It is a clear demonstration that we are able to ship on the brand new NDF Strategy and its dedication to provide versatile and scalable financing as well as catalytic impression. It has all of the components that outline NDFs added worth in the climate financing panorama. It demonstrates our capability to convene and mobilise extra financing, in addition to our distinctive mi of financing devices to match the needs of our companions, public or private. We are proud to be standing with our partners and supporting the emergence of a greener economic system, precisely at this time of COVID-19.
Since our first funding in 2019, SunCulture has made large strides to unlock the potential of smallholder agriculture by way of progressive merchandise and client credit. FEI-OGEF is happy to find a way to refinance our inventor loan into this new working capital facility and proceed that progress alongside a dedicated and constructive group of lenders, famous Harr Guinness from Lions Head.
READ: SunCulture partner with Togo to hurry up entry to sustainable solar-powered farming
Judith Santbergen, Senior Investment Manager at AlphaMundi, said: “Since 2018, AlphaMundi has successively supplied assist to SunCulture by way of a mixture of technical help and debt investment. We are excited to proceed and improve our investment in the company through this new, progressive working capital facility.
Sjoerd Melsert, Senior Investment Manager at Triodos Investment Management, said: “SunCulture is a good instance of an progressive company that is lively on the nexus of renewable vitality and agriculture, using photo voltaic energy to increase farmers’ incomes. Our facility helps the additional development of SunCultures pay-as-you-go solar portfolio, resulting in a more sustainable and better production for smallholder farmers, which is full aligned with the mission, ambition and actions of Hivos-Triodos Fund.”
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