Walkers Advises Again On Receivables Financing For Off-Grid Solar Energy Project in Kenya

Walkers has advised African Frontier Capital (Mauritius) LLC (AFC) on the Jersey law aspects of the expansion of a (now) USD 127,000,000 receivables financing structure which is expected to finance the provision of improved energy access to 1.9 million people living off grid in Kenya and save over 600,000 tons of greenhouse gasses.

Under the original transaction, Brighter Life Kenya 1 Limited (BLK1), an indirect subsidiary of AFC incorporated in Jersey, was incorporated to acquire pay-as-you-go solar home system accounts receivables from d.light Limited (d.light Kenya), providing d.light Kenya with flexible working capital to finance its continued growth. BLK1 was originally financed by way of a USD 20 million senior debt facility provided by the United States International Development Finance Corporation as the original cornerstone senior lender.

Due to the success of the structure, Norfund the Norwegian Investment Fund for Developing Countries have agreed to become a co-senior lender and to provide BLK1 with USD 15 million of additional senior debt which will enable the expansion of the receivables financing structure.    

Nigel Weston, Partner at Walkers, commented: “We are delighted to have once again assisted AFC on the expansion of this receivables financing transaction that will continue to facilitate the provision of solar home systems and related solar products to d.light’s customers improving energy access to many people living off grid in Kenya.”

Tristan Maultby, Senior Counsel at Walkers, who advised on the deal alongside Nigel and Associate Meg McAuley, added: “The original transaction was a real highlight given the positive impact that it had and continues to have on the quality of life of so many people in Kenya.  It is fantastic to see the structure going from strength to strength and again shines a light on the very positive effect that offshore structures can have.  It was a pleasure working alongside AFC, Allen & Overy LLP and Kaplan & Stratton, Advocates Kenya to make this transaction a success.”

JERSEY
Nigel WestonPartnerT +44 (0)1534 700 788nigel.weston@walkersglobal.com
Tristan MaultbySenior CounselT +44 (0) 1534 700 754tristan.maultby@walkersglobal.com
Meg McAuleyAssociateT +44 (0) 1534 700 889meg.mcauley@walkersglobal.com