This archive report was first published on 10 June 2020.
On June 10, 2020, d.light and Solar Frontier Capital Limited (SFC) announced the establishment of a Ksh 6.9 billion financing vehicle, Brighter Life Kenya 1 Limited (BLK1), to provide d.light with flexible working capital and expand affordable energy access to 1.2 million people in Kenya.
BLK1 is an off-balance sheet financing vehicle that will acquire pay-as-you-go (PAYGO) Solar Home System (SHS) accounts receivables from d.light's Kenyan subsidiary, d.light Limited, to provide the company with the flexible local currency receivable financing it needs to make its Kenyan business sustainably cash flow positive.
"We are excited to announce this innovative funding structure in partnership with SFC. BLK1 provides us with the flexible local currency receivable financing we need to make our Kenyan business sustainably cash flow positive, which is an important milestone for sustainability for d.light and the off-grid energy industry as a whole," said d.light CEO Ned Tozun.
Part of BLK1 is being financed by a $20 million senior debt commitment from the U.S. International Development Finance Corporation (DFC), with the two-year commitment intended as the first in a series of vehicles designed to provide d.light with continuing access to sustainable and affordable local currency receivable financing.
