This archive report was first published on 13 June 2020.
On July 13, 2020, d.light and Solar Frontier Capital Limited announced the establishment of a Sh6.5 billion financing vehicle, Brighter Life Kenya 1 Limited, to provide d.light's Kenyan subsidiary with flexible working capital.
The financing vehicle, BLK1, is dedicated to acquiring pay-as-you-go solar home system accounts receivables from d.light's Kenyan subsidiary, enabling the company to finance its continued growth and expansion.
BLK1 is expected to finance the provision of improved energy access to 1.2 million people in Kenya, building on d.light's milestone of reaching 100 million customers.
d.light CEO Ned Tozun expressed excitement about the innovative funding structure, stating, '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.'
Eric De Moudt, founder and CEO of African Frontier Capital, added, 'We have been very impressed with d.light as a leading innovator in the distributed energy access sector, and SFC is delighted to be partnering with them on this high-impact receivables financing structure.'
Part of the project is being financed by a Sh2 billion senior debt commitment from the US International Development Finance Corporation.
