Introduction
d.light, a global provider of affordable household products and finance solutions for low-income families, has announced the successful closing of a new securitization facility. This significant financial milestone will facilitate the purchase of $176 million worth of receivables in Kenya, Tanzania, and Uganda, enhancing d.light's ability to bring solar-powered products to underserved communities.
Scaling Up PayGo Consumer Finance
In a recent press release, d.light highlighted that the new facility would be instrumental in scaling up its PayGo consumer finance offering. This expansion aims to make solar-powered products more accessible to low-income households and communities that lack reliable electricity. The multi-currency facility is expected to provide renewable energy access to an estimated six million people across Kenya, Tanzania, and Uganda over the next three years.
A Landmark Achievement
This new facility, provided by the social impact-focused asset management company African Frontier Capital (AFC), marks a significant achievement for d.light. Since 2020, the company has closed securitized financing with a total combined purchasing value of $718 million across five separate facilities. Commenting on this development, d.light CEO Nedjip Tozun stated, “This new facility is another landmark step in d.light’s mission to provide people with affordable energy that is also clean, safe, and sustainable. It lets us expand our reach so that millions of off-grid families across Kenya, Tanzania, and Uganda can experience the benefits of solar energy.”
Financial Stability and Growth
Tozun emphasized that the new facility enables d.light to maintain cash flow positivity and reduces the need for further external equity fundraising to support its growth. “With this new facility, d.light has for the first time in its history receivables-based financing facilities in each of our PayGo markets – Kenya, Uganda, Tanzania, and Nigeria,” he added. This financial stability is crucial for the company's ongoing efforts to provide sustainable energy solutions to low-income communities.
Innovative Financial Solutions
Eric De Moudt, AFC’s founder and CEO, praised the milestone as a testament to the power of data-driven financial innovation in promoting financial inclusion. “This milestone is a testament to how data-driven financial innovation can play an important role in bringing financial inclusion to the world’s most vulnerable communities, helping them to gain access to clean and modern energy and the ensuing social and economic benefits that come about as a result. We are grateful to d.light for its ongoing leadership in the off-grid solar sector and proud to partner with such a visionary company,” De Moudt stated.
Proven Track Record in Securitized Finance
d.light has demonstrated a successful track record in utilizing securitized finance to support its solar-powered household products in sub-Saharan Africa. Since 2020, the company has established four facilities, including two in Kenya and one each in Nigeria and Tanzania. The combined purchasing value of these facilities, along with the new facility, totals $718 million.
Notable Achievements
In February of this year, d.light announced that its $110 million securitization facility, Brighter Life Kenya 1 Limited (BLK1), had successfully repaid its entire senior debt ahead of schedule, using internally generated cash flows. This achievement marked the first time a facility in the off-grid solar sector had accomplished such a feat.
Longstanding Commitment in East Africa
d.light has been actively working with distribution partners in Kenya, Uganda, and Tanzania since 2010. The company established its own operations in Kenya in 2011, in Uganda in 2015, and in Tanzania in 2016. This long-term commitment underscores d.light's dedication to providing sustainable and affordable energy solutions to underserved communities in East Africa.
