October 17 (Renewables Now) - Kenyan solar power firm M-Kopa Solar has agreed USD 80 million (EUR 67.9m) in committed debt financing for its residential solar programme, it said last week.
M-Kopa Solar makes solar home systems affordable to low-income off-grid households on a pay-as-you-go installment plan. Its customers get power on daily mobile money payment plans and the cost is lower than that of kerosene fuel.
The USD 80 million in funding will help roughly a million homes go solar through the pay-as-you-go scheme in the next three years, the Kenyan company said.
About USD 9 million of а USD-55-million local currency equivalent debt facility has been provided by South African lender Stanbic Bank and USD 20 million came from CDC Group plc, the UK’s development finance institution. FMO, the Dutch development bank, extended USD 13 million and Norway-based Norfund provided an additional USD 13 million. The USD-55-million loan, which is in Kenya and Uganda shillings, will be backed by customer receivables.
Meanwhile, M-Kopa has also obtained USD 25 million in debt from responsAbility, Symbiotics, and Triodos Investment Management.
At present, more than 500,000 households in East Africa have enrolled for the pay-as-you-go programme, M-Kopa said.
(USD 1.0 = EUR 0.848)