More than 150,000 Nigerians set to benefit from REPP-enabled US$10m syndicated loan facility
UK-government funded REPP and EC-sponsored ElectriFI have provided US$2.2m and US$3m initial loans respectively to catalyse rollout of clean energy access to some of the country’s remotest communities
London, 5 April 2019: A US$10 million syndicated loan facility has been set up by the Renewable Energy Performance Platform (REPP) to scale up efforts to bring electricity to some of Nigeria’s most isolated communities.
UK-based project developer PAS Solar Limited has installed more than 3,500 solar home systems (SHS) – for households and micro enterprises – with early stage funding assistance from REPP. This has provided first-time access to clean electricity to an estimated 17,500 people in five of the country’s northern regions.
Now the company is looking to increase the number of installations to at least 35,000 over the next five years, bringing the total number of people getting first-time clean energy access to over 150,000.
The loan syndication is a $10m senior debt facility with a five-year tenor that will enable PAS Solar’s expansion plans by crowding-in additional senior lenders. The facility – which was designed by REPP and implemented through the programme’s manager, Camco Clean Energy, as arranger – represents an innovative funding solution for the SHS sector.
With sole funding from the UK’s International Climate Finance, REPP has so far committed $2.2m to the syndication, which includes the early stage funding assistance. A further $3m has been committed by the EC-sponsored Electrification Financing Initiative (ElectriFI) facility, managed by EDFI Management Company. The remaining $4.8m of the syndication is available to lenders as an accordion facility.
Geoff Sinclair, REPP Investment Manager and Managing Director at Camco Clean Energy, said: “PAS Solar has proven its potential and this syndicated facility lays the groundwork for the developer to access a range of funders as it grows.
“We are confident that the mechanism will quickly attract more lenders and PAS can continue its remarkable work bringing clean and affordable electricity to some of Nigeria’s most underserved communities.”
Kristoffer Laurson, Chief Financial Officer at PAS Solar, commented: “This new syndicated loan program will enable a rapid scaling of the venture during 2019, reaching customers in the current five states and expanding to new regions.
“PAS Solar has a strong customer uptake, which proves vast market opportunity in the region and that SHS deployment is commercially viable with a focus on true off-grid communities to replace disposable dry cells and polluting combustible fuels.”
Dominiek Deconinck, ElectriFI Fund Manager, said: “We are delighted to partner with PAS and REPP to reach out to remote rural communities in Nigeria and bring access to electricity, which is a key driver to economic development.
“This investment responds very well to the impact ambitions of the ElectriFI facility, and will help improve the lives of around 150,000 people, replacing harmful kerosene with clean and sustainable solar solutions.”
Notes to editors
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The Renewable Energy Performance Platform (REPP) works to mobilise private sector development activity – and investment – in small to medium-sized projects (typically up to 25MW). It is supported with £148m funding from the UK’s International Climate Finance through the Department for Business, Energy and Industrial Strategy (BEIS) , and to date, has agreed contracts with 19 renewable energy projects across 13 countries, employing seven different technologies, from SHS and PV mini-grids to biomass and run-of-river hydro.
About Camco Clean Energy
Camco Clean Energy is a global leader in sustainable energy projects finance. Its long-established position within Africa’s renewable energy sector enables the company to provide project developers and sponsors with a trusted combination of global access and local presence, enabling them to source the right financing solutions to develop and build projects.
Since formation, it has provided creative finance solutions to 180 projects worth $15bn, and in geographies as diverse as Zambia to Malaysia and the US to Uganda.
ElectriFI, the Electrification Financing Initiative, is an impact investment facility with a mandate to invest in on- and off-grid early stage private companies and projects focusing on new/improved connections as well as on generation capacity from renewable energy sources in emerging markets. Typical business models include solar home systems, mini-grids, IPPs and captive power production. Core investors are the European Commission and Power Africa.
ElectriFI and its sister-fund AgriFI, are managed by EDFI Management Company NV in close association with the 15 European Development Finance Institutions (EDFI), as well as many other like-minded investors.
About PAS Solar Limited
PAS Solar Limited is a distributed energy company that provides electricity to bottom-of-the-pyramid customers and micro-businesses by installing and maintaining solar home systems for a monthly service fee. PAS Solar has formed a partnership with BBOXX, to exclusively distribute their products in Nigeria.
PAS Solar is part of the Pan Africa Group, which includes three primary business verticals: Pan Africa Solar, providing utility-scale solar solutions in northern Nigeria; Pan Africa Hybrid, developing hybrid solar solutions for commercial and industrial customers; and PAS Solar, deploying solar home systems to off-grid households in rural and peri-urban communities.
About the UK’s International Climate Finance
International Climate Finance is a UK Government commitment to support developing countries to respond to the challenges and opportunities of climate change. As part of this commitment, the UK is providing at least £5.8bn of ICF between 2016-2020, aiming for an even split between mitigation and adaptation. This places the UK amongst the world’s leading providers of climate finance. Programmes are focused on:
- Building the resilience of the poorest people and communities
- Ensuring that the vast expansion in infrastructure in developing countries is low-carbon
- Halting deforestation