M-KOPA Solar, a provider of solar energy solutions, recently secured $80 million to finance the access to solar energy in at least a million homes in Kenya and Uganda.
Partnering a group of financial lenders, this is arguably the largest credit commitment towards off-grid solar energy in East Africa. The money will be spent over three years.
According to the arrangement of the syndicate loan, Stanbic bank will shore up $55 million in local currency debt, with the bank itself committing $9 million. Of the $55 million, the UK's Commonwealth Development Corporation will offer $20 million, Netherlands' FMO will come up with $13 million while Norway's Norfund will also chip in with $13 million.
M-KOPA said the money will be sourced "in Kenya shillings and Uganda shillings and will be backed by customer receivables, paid over mobile money payment plans."
M-KOPA has also secured $25 million in dollar-denominated debt from responsAbility, Symbiotics, and Triodos Investment Management.