d.light secures $50M green bond, a first for off-grid solar
What's the deal? Solar company d.light has secured a $50 million green bond, the first time the off-grid solar sector has tapped public capital markets.
The debt round was led by African Frontier CapitalDealroom has a profile for this one. Try Dealroom →, with backing from Legal & GeneralDealroom has a profile for this one. Try Dealroom →, Calvert Impact CapitalDealroom has a profile for this one. Try Dealroom →, and CeniarthDealroom has a profile for this one. Try Dealroom →.
The bond pushes d.light's Pay-As-You-Go receivables platform to $1 billion in cumulative purchasing capacity. It aims to expand clean energy to about 4.3 million people across Sub-Saharan Africa.
Why now? For years, off-grid solar in Africa has leaned on development finance institutions and impact investors.
This bond opens a pathway for institutional investors. Rated BBB by FitchDealroom has a profile for this one. Try Dealroom → and listed on the London Stock Exchange's International Securities Market, it carries a full guarantee from the Green Guarantee Company.
That backing cuts financing costs, helping d.light offer affordable payment plans to customers who often lack access to traditional credit.
"This is a major step not just for d.light, but for the entire off-grid solar sector," said Ned TozunDealroom has a profile for this one. Try Dealroom →, co-founder and chief executive officer.
The signal: By drawing in corporate institutional money from the likes of Legal & General alongside dedicated impact funds, the bond marks a shift for late-stage d.light away from the development finance institutions that have long bankrolled off-grid solar in Africa. It is the clearest sign yet that the sector's receivables can stand on their own in public capital markets.
Read more: The Next Africa
Image credit: DFID - UK Department for International Development
