- Solar PV
- Business model
ElectriFI global subscribed to a USD 5 million junior debt in PEG Africa to finance its distribution of Solar Home Systems in Côte d’Ivoire and Ghana as well as its expansion to Senegal. The ElectriFI financing is accompanying a capital increase and both are catalyzing a senior debt tranche involving CDC group.
Contract Signature: September 2019
Country: Ghana, Côte d’Ivoire and Senegal
Total ElectriFI Financing: EUR 5M
Environmental and Social Category: B
(A) high risk, (B+) medium high risk, (B) medium risk or (C) low risk
Starting commercial activities in 2015, PEG is the leading company deploying and financing solar to off-grid homes in West Africa, distributing industry-leading PAYG solar home technology to consumers who lack both access to reliable electricity and formal banking services. PEG has today over 75,000 customers, over 450 full time staff and 72 service centers across Ghana and Côte d’Ivoire and recently in Senegal. ElectriFI will provide 20% of the financing required to grow the customer base up to around 128,000 customers, meaning providing access to electricity to more than 640,000 people. PEG is expected to employ 750 people by the end of 2020 and to have more than 1000 direct sales agents active in the field.
Why ElectriFI wants to fund this project:
PEG Africa raised a USD 25m Series C round. ElectriFI participation is a part of that round, with a USD 5m junior corporate debt. This is catalyzing the senior debt tranche (USD 15m) to enable the company to further grow its footprint in Ghana and Côte d’Ivoire while at the same time it will pursue further international expansion into Senegal and other markets.
ElectriFI is supportive of PEG’s SHS business model as it replaces kerosene and solar lanterns while bringing high-quality, stable, low cost, clean energy to remote rural households, with a high additionality both in terms of financial and E&S impact.
- Number of beneficiaries
- Annual output (MWh/y)
- GHG avoidance (tCO2eq/y)