Sun King, a leading solar energy solutions provider in Africa and Asia, has teamed up with Citi, a prominent financial institution, for an extraordinary venture. Together, they are breaking new ground with a bank-led securitization deal that is entirely denominated in Kenyan shillings and tailored to the local market. Their primary goal is to increase access to finance for off-grid solar solutions in Kenya, making affordable and sustainable energy available to those who need it most.
This innovative initiative, valued at an impressive $130 million, aims to utilize payments from Sun King's current and future Kenyan customers to raise funds for further growth in the off-grid solar energy sector. What's exciting is that the very people benefiting from Sun King's solar solutions will become key players in driving the expansion of clean energy in their communities.
Through this securitization structure, investors have the opportunity to finance future payments from over a million Sun King customers. This not only offers new investment prospects but also taps into an underserved market, providing access to clean energy solutions while offering diversified and manageable returns.
Sun King is renowned for its expertise in designing, distributing, installing, and financing solar energy solutions for homes and businesses across Africa and Asia. Their "Easy Buy" model, which allows customers to purchase solar products and make affordable installment payments as low as $0.15 per day using mobile money or cash, further increases accessibility to solar power for Kenyans.
Citi, taking the lead as the placement agent, has played a crucial role in structuring this scalable loan instrument. With the support of Standard Bank Group as the co-placement agent, this securitization deal, issued under Sun King's Sustainable Financing Framework, aims to accelerate the adoption of clean and reliable energy solutions in Kenya. By addressing the urgent issue of electricity access for about 30% of the population, this partnership represents a significant stride towards sustainable development and a brighter future for all Kenyans.
Sun King and Citi are spearheading a transformative initiative that brings clean and affordable energy within reach for millions of Kenyans. By harnessing the power of the sun and financial innovation, they are not only empowering individuals and businesses but also paving the way for a greener and more sustainable Kenya.
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