d.light, a global leader in social transformation and Chapel Hill Denham, an investment banking firm in Nigeria, has closed N10 billion in securitised finance to fund off-grid solar expansion in Nigeria.
The new financing will be provided by Chapel Hill Denham’s Nigeria Infrastructure Debt Fund and will be used to scale up d.light’s low-cost Pay-Go offering of affordable, solar-powered products targeted at low-income households, according to a statement on Wednesday.
“The structure of the financing was set up and is sponsored by African Frontier Capital, which also acts as the master servicer and backup servicer in the transaction,” the statement said.
Nick Imudia, CEO of d.light, said in the statement that the landmark financing opens up access to the company’s range of solar-powered household goods to more low-income families and households in Nigeria, in a way that is affordable for them and sustainable for their business
“d.light has a track record of success in using securitised finance in other Sub-Saharan African countries as a flexible, scalable financing model for raising equity for off-grid solar that is guaranteed against current and future customer sales,” he said.
“We are now applying this experience in Nigeria as we scale up our operations there. In Chapel Hill Denham, we have a partner that is not only commercially astute but also equally dedicated to sustainable development,” Imudia added.
According to Bolaji Balogun, chief executive officer at Chapel Hill Denham, the transaction signifies a pivotal stride in sustainable infrastructure investment in Nigeria, setting a transformative precedent for the renewable energy sector.
“By pioneering local currency securitisation for the financing of solar home systems and essential solar-powered household utilities in Nigeria, Chapel Hill Denham is catalysing innovation in the renewable energy sector, advancing sustainable development, empowering communities, and reshaping Nigeria’s infrastructure landscape for a brighter, more sustainable future for all.”
Anshul Rai, partner of infrastructure and climate at Chapel Hill Denham, said this is another significant milestone for the company and NIDF, with the first-ever at-scale, local currency securitisation financing for Solar Home Systems and other solar-powered household goods in Nigeria.
“We continue to broaden the range of financing solutions available to infrastructure providers in Nigeria, with particular emphasis on solving the greatest sustainable development challenges facing Nigeria,” Rai said.
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