Walkers (Jersey) LLP (Walkers) advised African Frontier Capital (Mauritius) LLC (AFC) on the Jersey law aspects of a US$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.
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.
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.
Allen & Overy LLP advised AFC as to matters of English law and New York law and Kaplan & Stratton, Advocates Kenya advised AFC as to matters of Kenyan law.