Sun King
Kenya – Expanding access to off-grid solar electricity through market innovation
$130 million LCY securitization in Kenya-transaction towards expanding access to solar electricity for communities living off grid
The Client
- Sun King is a leading off-grid solar company expanding access to energy for low-income communities in Kenya
- Pay-as-you-go model enables households to access safe and reliable solar home systems through digital financing
- To date nearly 13 million households in Kenya have improved access to energy
The Transaction
- Amount: USD $130MM (KES 17.8 billion)
- Use of proceeds: to expedite clean and reliable energy access for Kenyan consumers
-
Citi was the lead arranger of transaction, with participations by leading commercial and development finance institutions:
- Absa Bank Kenya PLC, British International Investment, FMO, Norfund,
- Stanbic Kenya and the Southern African Trade and Development Bank
The Impact
Economic inclusion & Food security:
- Three out of every ten Kenyans live without access to electricity. Many off-grid households devote 5 to 10% of their income to lanterns or gas generators for light and power.
- Solar energy offers clean and reliable energy as well as long-term cost savings for homes and businesses, Sun King offers Kenyan consumers transition to solar energy but avoiding expensive upfront equipment cost
Affordable Basic Infrastructure:
- Supports reliable energy access to 1.2 million customers in Kenya mainly living off the electricity grid, including 600,000 low-income women
- Average loan size: US$ 110