Sun King, the leading provider of solar energy solutions for off-grid homes in Africa and Asia, has secured a $7 million loan from Lendable, a major financier for fintech companies in developing markets.
This collaboration will fuel Sun King’s expansion, bringing clean energy to more low-income customers across Africa through its innovative pay-as-you-go model.
Lendable’s investment recognizes Sun King’s pioneering role in designing, distributing, and financing solar home systems. This debt financing, dedicated to purchasing more solar systems, reflects both companies’ shared commitment to driving positive change, promoting financial inclusion, and transforming Africa’s energy landscape.
In May 2023, Sun King and Citi established a first-of-its-kind, bank-led and entirely Kenyan-Shilling-denominated $130 million sustainable securitisation transaction. The transaction leverages Sun King’s existing and future Kenyan customers’ payments for solar products to raise funding for further growth and expansion.
Arranged by Citi and supported by leading development finance institutions and commercial lenders from six countries across the globe, the investment paves the way for future African securitisation deals and diversifies funding for Kenya’s off-grid solar energy sector. Through the proposed transaction, customers’ future payments for solar products bought on credit will be securitised and funded by investors.
In the same month of the securitisation, Sun King launched its Sustainable Financing Framework to enhance the sustainability of its fundraising and investing activities. Sun King reaffirms its dedication to promoting responsible financial practices, enhancing access to clean energy, and contributing to a more sustainable future. From creating employment opportunities for the unemployed and women to improving household savings for food and school fees as well as eliminating harmful kerosene and gas generators and promoting financial inclusion through pay-as-you-go services, the framework traces how Sun King drives progress across a wide range of SDGs.
Sun King’s cost-effective solar systems are revolutionizing how people in Africa and Asia access electricity. They have already brought light and power to 95 million people previously in the dark, while also preventing over 24 million tons of carbon dioxide emissions.
These systems offer a sustainable and affordable alternative to kerosene or grid-based electricity, empowering communities to bypass dependence on fossil fuels.
“We are thrilled to partner with Lendable in our mission to bring energy access and financial inclusion to Africa,” said Krishna Swaroop, Sun King’s Chief Financial Officer (CFO).
“This investment will allow us to reach more communities and create a cleaner, brighter future. We look forward to building on this partnership and amplifying our positive impact.”
Sebastian Wichmann, Lendable’s Regional Head for Africa, echoed this enthusiasm: “Lendable is proud to be part of Sun King’s journey in expanding clean energy access across Africa. Our investment reflects our commitment to sustainable development and impactful initiatives. Sun King’s proven track record and dedication to innovation make this partnership a powerful force for change.”