EDFI ElectriFI announces successful exit of USD2M loan to REDAVIA, and further investment in the group’s expansion in Kenya and Ghana
EDFI ElectriFI, the EU-funded Electrification Financing Initiative, successfully exited a USD 2M loan (EUR 1.83M equivalent) subscribed in 2018 by REDAVIA, a solar power provider for commercial and industrials in West and East Africa, and signs at the same time a new USD 3.1M (EUR 2.84M equivalent) loan to accelerate the company’s expansion in Ghana and Kenya.
Three years after contracting a USD 2M senior debt agreement to support REDAVIA’s expansion in Ghana, EDFI ElectriFI is successfully closing and exiting the financial agreement with the company offering affordable, reliable, and clean power generated through modular solar farms. In addition, EDFI ElectriFI committed an extra senior secured USD 3.1M debt to finance solar assets in Ghana and Kenya.
“We are delighted with the partnership initiated back in 2018. REDAVIA is one of the first C&I players on the continent, and demonstrated through the years, the capacity to develop, finance, operate, and grow a portfolio of solar assets. This new investment backs REDAVIA’s unique approach in the market with standardised solar farms and well-defined customer segments, allowing for rapid growth in a market where competition intensified in recent years. We wish them well and look forward to scaling further as REDAVIA expands beyond Ghana and Kenya” said Quentin Antoine, Senior Investment Manager at EDFI Management Company.
The Germany-headquartered company with subsidiaries in Ghana, Kenya and Luxembourg has a proven track-record in solar farm design, manufacturing, deployment, and maintenance, and targets the local business community including agro-foods processing, manufacturing, public infrastructure, and hospitality & real estate companies.
REDAVIA’s solar power plant leasing service is rapidly gaining traction in the business world. With just a minimal upfront investment, customers can reduce costs and increase operational flexibility. The company’s system consists of a pre-configured unit containing solar modules and electrical components. Once deployed on-site, REDAVIA’s technical team instals and manages the operations and maintenance of the solar farms. In addition, the firms are achieving their sustainability objectives by reducing their carbon footprint as a result of REDAVIA’s carbon neutral solution.
“Everyone at REDAVIA is very grateful for the financial support provided by EDFI, which has enabled REDAVIA to make big strides towards our goal of operating 100MWp of solar at Small and Medium-sized Enterprises in industrialising African economies, to create local wealth and employment sustainably. This transaction is a perfect stepping stone for REDAVIA’s upcoming equity raise, including our crowdfunding, going live soon at www.invest-redavia.com” stated Erwin Spolders, CEO and Founder of REDAVIA.
For the period 2018-2022, in Ghana alone, REDAVIA commissioned 3.4MWp of solar capacity servicing 41 C&I customers for an annual output of 3,176 MWh/y, helping avoid the equivalent of 4,129 tons/y of carbon emissions.
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About REDAVIA
REDAVIA offers solar power for C&I in West and East Africa. The REDAVIA system is based on a pre-configured model, including high-performance solar modules and electrical components. It is easy to ship, set up, scale, and redeploy. Businesses benefit from a cost-effective, reliable, clean energy solution with minimal upfront investment or technical skills. www.redaviasolar.com
About EDFI ElectriFI
EDFI ElectriFI is an EU-funded impact investment facility, financing early-stage private companies and projects, focusing on new/improved electricity connections as well as on generation capacity from sustainable energy sources in emerging markets. EDFI ElectriFI, is managed by the EDFI Management Company, a company established by the 15 European Development Finance Institutions (DFIs). www.electrifi.eu and www.edfi.eu