OPIC Approves $15 Million in SunFunder's $50 Million "Beyond The Grid Solar Fund"
April 25, 2016
(OPIC)
WASHINGTON – The Overseas Private Investment Corporation (OPIC), the U.S.
government’s development finance institution, today announced approval of a $15
million loan to a new investment vehicle managed by SunFunder Inc. that will
provide financing to companies operating in developing counties that
manufacture, distribute and install solar lighting and energy systems. This
project uses OPIC’s Innovative Financial Intermediaries Program (IFIP), which
focuses on smaller investment funds that apply innovative approaches to address
specific development challenges.
Through its $50 million “Beyond The Grid Solar Fund,” SunFunder estimates that
several million individuals will benefit by switching from kerosene and diesel
to solar energy, thereby enabling low-income households and businesses to lessen
their expenditures on energy while significantly reducing CO2 emissions.
“OPIC is proud to partner with SunFunder in delivering innovative financing
solutions for off-grid and grid-deficit solar energy in developing countries,”
said Elizabeth Littlefield, OPIC’s President and CEO. “The fund will facilitate
access to financing by companies that provide clean energy products and
services.”
“Solar energy is the most viable solution to replace dirty and unreliable fossil
fuel energy sources and to increase energy access for those who really need it,”
said Ryan Levinson, SunFunder’s Founder and Chief Executive Officer. “To support
solar’s growth in emerging markets, access to sector-specific financing is key.
OPIC’s investment in SunFunder's Beyond The Grid Solar Fund will help expand our
ability to respond to the financing gap that exists for off-grid and
grid-deficit solar. Getting this kind of support and validation from OPIC will
open up more opportunities not only for solar enterprises but also for investors
worldwide.”
Approximately 2.1 billion people in the developing world live without access to
reliable energy and must rely on expensive and inferior energy sources such as
kerosene and diesel for their lighting and electricity needs.
SunFunder will provide receivables financing, project financing, and
inventory/working capital loans to the manufacturers, distributors, installers
and retailers that provide solar energy in countries such as Tanzania, Kenya,
Rwanda, Ethiopia, Zambia, Philippines, Uganda, Ghana, Pakistan and India. The
types of solar products will range from portable solar powered lamps to 200W
solar home systems to 500kW diesel replacement systems. The social impact of
having bright, durable and safe energy will enable businesses to stay open
longer and allow children to study at night.
In December 2013, SunFunder received $150,000 in African Clean Energy Facility
(ACEF) funding to expand its client base in Africa and help prepare for its OPIC
loan application. The “Beyond The Grid Solar Fund” was selected for a loan
through OPIC’s IFIP, a $500 million pilot program to support smaller-scale
financial intermediaries investing in OPIC-eligible countries with a specific
focus on impact and innovation.
Welcome to the Exporting Source
Your one-stop resource for finding help to export to new customers, to learn about government export programs, to join export-promoting trade missions, to sign up for trade conferences and training, and to link to other exporting services. Whether you're an old hand at exporting or just getting started, the Exporting Source provides a place to locate foreign customers, export financing and foreign investment assistance.