d.light, a global leader in household solar products, and Chapel Hill Denham, a Nigerian alternatives asset manager, have announced the closure of a N10 billion (~ $7.4 million) securitized financing facility to enhance access to clean energy across Nigeria.
Facilitated by Chapel Hill Denham’s Nigeria Infrastructure Debt Fund (NIDF), this new financing mechanism will strengthen the expansion of d.light’s low-cost Pay-Go solar products tailored for low-income households across the country.
The financing structure, led and sponsored by African Frontier Capital, operates with the dual mandate of enhancing accessibility to affordable clean energy solutions while ensuring the sustainability and scalability of d.light’s business model.
Nick Imudia, CEO of d.light, celebrated the financing as an epic moment in the company’s mission to boost solar energy access in Nigeria. Imudia emphasized the impact of the financing, noting its potential to empower low-income families while driving sustainable business growth.
“d.light has a track record of success in using securitized finance in other Sub-Saharan African countries as a flexible, scalable financing model for raising equity for off-grid solar that is guaranteed against current and future customer sales.
We are now applying this experience in Nigeria as we scale up our operations there. In Chapel Hill Denham, we have a partner that is not only commercially astute but also equally dedicated to sustainable development,” stated Imudia.
Bolaji Balogun, CEO of Chapel Hill Denham, reiterated Imudia’s statement, highlighting the transaction’s importance in advancing sustainable infrastructure investments in Nigeria.
Balogun pointed to the unique nature of the securitized financing, stressing its role in enabling innovation and resilience within the renewable energy sector.
“The collaboration between d.light and Chapel Hill Denham underscores our shared commitment to sustainable development and community empowerment. By spearheading local currency securitization for solar home systems, we are propelling Nigeria towards a greener, more inclusive energy landscape,” commented Balogun.
Anshul Rai, Partner at Chapel Hill Denham emphasized the achievements through the NIDF’s pioneering financing model, emphasizing its potential to address Nigeria’s energy access challenges while mitigating environmental impact.
The urgency of the initiative is brought out by last year’s Energy Progress Report, which highlighted Nigeria’s unstable energy deficit, with approximately 86 million people lacking access to electricity.
The report noted the imperative of transitioning away from fossil fuel-dependent energy sources towards sustainable alternatives.
Through strategic partnerships and innovative financing mechanisms, d.light and Chapel Hill Denham will combine cutting-edge technology with financial ingenuity.
The collaboration aims to bridge the gap between energy demand and accessibility, bringing a more sustainable future for all Nigerians.
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