September 26 (Renewables Now) - The Overseas Private Investment Corporation (OPIC) has committed USD 25 million (EUR 21.3m) in financing to a fund that will provide loans to off-grid solar companies in Sub Saharan Africa and Asia, the US government's development finance institution said on Tuesday.
The commitment is to the Solar Energy Transformation Fund LLC, which is managed by SunFunder. OPIC's contribution consists of both a senior and a subordinated tranche and is expected to help attract other impact-focused investors to take the fund to a target size of USD 85 million. The fund is projected to provide financing to more than 50 companies, which will help more than three million people gain access to electricity.
OPIC previously contributed USD 15 million in financing and USD 10 million in political risk insurance to SunFunder's Beyond the Grid Solar Fund, active in Africa, India and the Pacific Islands. This fund has so far provided loans to 16 off-grid solar companies, which have helped bring electricity to 1.55 million people.
(USD 1 = EUR 0.852)