Chapel Hill Denham has successfully concluded a $7.4 million (N10 billion) securitized financing deal for off-grid solar projects across Nigeria with d.light, a leading supplier of household products and affordable financing solutions for low-income families.
This injection of funds, sourced from Chapel Hill Denham’s Nigeria Infrastructure Debt Fund, is earmarked for the expansion of d.light’s Pay-Go service. This initiative focuses on offering low-cost, solar-powered products designed specifically for low-income households, aiming to improve access to sustainable and affordable energy solutions.
The financing agreement was structured and is backed by African Frontier Capital, which also plays a pivotal role as the master servicer and backup servicer in this financial arrangement, ensuring a robust framework for the transaction.
What Chapel Hill Denham is saying
The CEO of Chapel-Hill Denham said the deal marks a landmark in Nigeria’s sustainable infrastructure, pioneering local currency securitization for solar home systems.
He noted that Chapel Hill Denham’s initiative is seen as catalysing innovation in the renewable energy sector, promoting sustainable development, and transforming Nigeria’s infrastructure towards a brighter future.
- According to him, “This is another significant milestone for Chapel Hill Denham and NIDF, with the first-ever at scale, local currency securitisation financing for Solar Home Systems and other solar-powered household goods in Nigeria”
More insights
Epileptic power conditions are not new to Nigerian households- the CEO of the NNPCL Mele Kyari noted recently that over 50% of Nigeria’s population do not have access to electricity. A report by the World Bank stated that around 85 million Nigerians lacked access to electricity as of 2021. This is despite the enormous clean energy potential in clean energy- solar and wind.
- Nigeria is estimated to have about 427 GW of solar power potential, although current generation capacity is estimated at 5GW. Exploration of this potential has been hindered by various challenges, such as tariff structures and doubts regarding the existing transmission infrastructure’s ability to support extra power generation.
- The new electricity act signed by President Tinubu on assumption into office allows for private individuals and organisations to generate and transmit electricity within areas covered by the national grid.
