Walkers Advises on a Receivables Financing to Help Over a Million People Living Off-Grid in Kenya Access Solar Energy Products
Walkers (Jersey) LLP (Walkers) has advised African Frontier Capital (Mauritius) LLC (AFC) on the Jersey law aspects of a USD 65 million receivables financing transaction which will enable people living off-grid in Kenya to buy d.light solar home systems and related solar products.16 June 2020
Recognising the positive impact that the provision of affordable and sustainable solar energy products has on communities and quality of life, Walkers delivered a significant proportion of its work on the transaction on a pro bono basis.
Tristan Maultby, Senior Counsel at Walkers commented: “We are delighted to have assisted AFC and lead counsel Allen & Overy LLP on this receivables financing transaction. The transaction is expected to facilitate the provision of solar home systems and related solar products to d.light’s customers in Kenya, bringing electricity to well over a million people currently living off-grid in Kenya, and helping to sustain the local off-grid energy industry.”
Under the transaction, Brighter Life Kenya 1 Limited (BLK1), a newly incorporated Jersey company and an indirect subsidiary of AFC, will receive one or more loans from U.S. International Development Finance Corporation (DFC) as senior lender. The loans from DFC will be secured by receivables derived from consumer finance agreements between the Kenyan subsidiary of d.light (d.light Kenya), who provide solar home systems and related solar products to consumers, and their customers.
The consumer loans to d.light’s customers are repaid through their mobile phone payments, and those payments are ultimately used to repay DFC.
By providing d.light with flexible working capital to finance its continued growth, BLK1 is expected to finance the provision of improved energy access to over a million people in Kenya and is intended to be the first in a series of vehicles established to provide d.light with continuing access to receivables financing.
Nigel Weston, Partner at Walkers added: “The fact that this transaction will directly improve the quality of life of so many people was a great motivating factor for the Walkers team. This transaction also demonstrates the very positive impact that offshore structures can have on facilitating the international flow of capital to really benefit the day to day lives of huge numbers of people. It was a pleasure working alongside AFC, Allen & Overy LLP and Kaplan & Stratton, Advocates Kenya to make this transaction a success.”
Allen & Overy LLP advised AFC as to matters if English law and New York law and Kaplan & Stratton, Advocates Kenya advised AFC as to matters of Kenyan law.