Hogan Lovells advises Norfund in expanded financing for Kenyan off-grid solar energy project
New York, 29 January 2021 – Global law firm Hogan Lovells advised the Norwegian Investment Fund for Developing Countries (Norfund) in expanding the receivable financing facility of Brighter Life Kenya 1 Limited (BLK1), an off-balance sheet financing vehicle that is dedicated to acquiring pay-as-you-go (PAYGO) Solar Home System (SHS) accounts receivables from solar energy product developer d.light.
Norfund’s US$15 million participation in the senior loan financing helped increase the financing facility to US$127 million, and joins Norfund with the United States International Development Finance Corporation (DFC) as a co-senior lender in the structure. Hogan Lovells advised DFC when it acted as the original cornerstone senior lender for BLK1 with a US$20 million financing in June.
As a social impact venture, the newly expanded BLK1 is expected to help finance improved energy access and financial inclusion to 1.9 million people living off-grid in Kenya, the creation of US$88 million of additional income for the Kenyan economy and save more than 600,000 tons of greenhouse gases.
The Hogan Lovells team who advised on the deal was led by partners Ricardo S. Martinez in New York and Andrew Taylor in London. The team also included senior associates Andrew Ceppos and Christopher Bonilla (New York), and associate Oliver Travers (London).
More information is available in Norfund’s press release here.