SunCulture raises $10M in solar irrigation securitisation
What's the deal? SunCulture, a Kenyan provider of solar-powered irrigation, has closed a $10 million securitisation of customer receivables led by the MirovaDealroom has a profile for this one. Try Dealroom → Gigaton Fund. The deal is structured as senior secured financing to a special purpose vehicle that acquires receivables originated by SunCulture KenyaDealroom has a profile for this one. Try Dealroom →.
What's the endgame? Founded in 2012, SunCulture has sold over 85,000 solar irrigation systems and pumps to smallholder farmers. Its "pay-as-you-grow" model lets farmers buy equipment on affordable repayment schedules, bundling insurance and warranty services.
Why now? The structure frees up capital previously tied to longer-dated customer receivables, letting SunCulture fund more sales. "Faster recycling of capital means more farmers irrigating sooner," said co-founder and chief executive officer Samir Ibrahim.
Ibrahim added that demand was never the constraint — financing was. "This structure addresses all three" — availability, cost, and duration — "and gives us the confidence to scale customer financing on long-term, FX-protected capital," he said.
The signal: The deal aims to be a template for financing distributed energy assets across Africa. "This transaction breaks new ground for the productive-use energy sector in Africa," said Rim Azirar, deputy head of emerging market energy transition at Mirova, adding it could "unlock new sources of long-term capital" for the continent.
Read more: africaprivateequitynews.com
Image credit: USDAgov
