Hanke

NB: REPAYMENT INTEREST AND NOTIONAL AFTER 39 MONTHS AT ONCE

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Summary

d.light is a global leader in social transformation by making transformative products available and affordable to low-income families. Most of their customers don’t have access to reliable power or financing, and d.light removes those barriers. They enable reliable power through our solar energy solutions and enable financing with our Pay As You Go technology. d.light has sold over 25 million products, including solar lanterns, solar home systems, TVs, radios and smartphones, impacting the lives of over 125 million people.

Their vision is to transform the lives of 1 billion people with sustainable products by 2030.

Use of Proceeds / Loan purpose

Brighter Life Kenya -2 (BLK-2) is an off-balance sheet financing vehicle that provides d.light with flexible working capital, enabling the company to provide consumer financing and make its products universally available and affordable for customers, most of whom live below the poverty line and lack access to reliable power. The facility will finance a range of transformative products that drive quality-of-life improvements, from solar home systems to high-efficiency appliances and smartphones. BLK-2 has been structured to provide d.light with USD 62 million in multi-currency financing (up to the equivalent of USD 238 million in face value of receivables) over a two-year commitment period, giving the company continued access to sustainable and affordable receivables financing for its Kenyan pay-as-you-go business with a plan to expand to other African countries in the near future.

Over 580 million people in Sub-Saharan Africa still lack access to basic electricity, and the improved standard of living that it brings. Energy solutions for these populations living off-grid include firewood, kerosene, and battery-powered torches which offer very poor lighting as well as being unhealthy and bad for the environment. Decentralized solar solutions (such as solar home systems) remain the fastest and most affordable ways to achieve universal electrification. The biggest barriers to achieving universal energy access with solar home systems (SHS) is affordability, as products cost upwards of EUR 100 while typical customers earn below EUR 2.5/day and cannot afford to pay the entire amount all at once. Pay-as-you-go (PayGo) financing allows customers to pay a small down payment upfront and pay the balance for their SHS over 18-24 months through mobile money. This business model has unlocked affordability for millions of people who otherwise could not have paid the upfront cost of an SHS. The challenge for PayGo companies, such as d.light, is generating capital to cover the upfront costs (manufacturing costs and selling expenses); the off-balance-sheet financing vehicle allows the company to sell its PayGo receivable and receive cash up front.

With this loan as a part of the broader BLK-2 facility, d.light will provide product financing to families living in rural off-grid communities of Kenya. This loan will enable the households affordable access to clean energy solutions and efficient appliances, and in the process reduce over 600,000 metric tons of CO2 emissions (measured as per GOGLA impact calculation methodology). The financing will also pave the way for d.light to expand its impact to newer countries in Africa, and broaden operations in existing markets.

Till date, d.light has sold over 25 million products and impacted over 125 million lives globally. Some of the products that would be covered under BLK-2 are:

• Solar home lighting systems: 3-4 light points with 9-12W solar panels and capable of multi-room lighting for 24 hours on a single charge plus power USB accessories
• Solar home systems: 4-8 light points with 40-120W solar panels and capable of multi-tasking: lighting, running large 12V appliances, and power accessories
• Appliances such as TVs, fans, smartphones

Mission

Transform lives with sustainable products.

Highlights or Awards

• Toyota Vehicles of Change First Place Winner 2019 -NationSwell and Toyota teamed up to find innovators who are rejecting old rules, creating change and protecting the planet. d.light was selected as the First Place Prize Winner in the 2019 Vehicles of Change Contest.
• 21st Century Icon Awards 2018 - d.light received the highest honor, taking home the Elite Rising Star award at the 21st Century Icon Awards 2018.  This award acknowledges private businesses that have demonstrated significant growth and genuine innovation in order to achieve their ambitious goals.
• 2016 Company of the Year - d.light was honored as a Silver Stevie Winner in the Energy Industry Innovation of the Year category for the d.light A1.
• Verizon Powerful Answer Winner 2014 - d.light was selected as a top winner in the Sustainability category for its innovative solution, designed to leapfrog grid infrastructure and convert the high costs of distributed solar energy into affordable monthly payments, providing consumers a clean, reliable and cost-effective source of energy.
• Social Entrepreneur of Year 2014 - Cofounders Ned Tozun and Sam Goldman were named Social Entrepreneurs of the Year 2014 by the Schwab Foundation for Social Entrepreneurship. d.light, along with 37 other individuals and organizations in the 2014 class, will be fully integrated into the events and initiatives of the World Economic Forum.
• Zayed Future Energy Prize 2013 - The world’s largest annual award in the renewable and sustainable energy sector. d.light was selected in the small and medium size enterprise category.
• New Energy Pioneer 2013 - d.light was named Bloomberg New Energy Pioneer in 2013, in recognition of our innovative, proven technologies, robust business model, ability to demonstrate traction and momentum in activities and potential for global scale.