Page 7 - AfrElec Week 09

AfrElec OFF-GRID AfrElec
NEoT Offgrid Africa to raise $45mn for off-grid solar in Côte d’Ivoire
CÔTE D’IVOIRE
NEOT Offgrid Africa (NOA) has launched a pioneering receivables securitisation pro- gramme that aims to raise up to EUR40mn ($44.5mn) to finance off-grid solar home sys- tems in West Africa.
NOA, which is majority-owned by French investor Meridiam, has closed the programme with Zola Electricity Côte d’Ivoire (ZECI), a joint venture owned by EDF and Zola Electric, that will provide solar home systems for 100,000 rural and urban households in Côte d’Ivoire.
NOA is the first investment platform to set up a receivables securitisation programme in the financing of off-grid energy projects in Africa. Its objective for this deal is to reach a portfolio worth EUR40mn ($44.5mn).
The securitisation programme involves NOA bearing the financial risks of operating a “rent- to-own” scheme in Côte d’Ivoire. This means that customers will take ownership of solar home systems after a rental period and will make their payments via a mobile money platform.
NOA has mandated Crédit Agricole CIB (CACIB), Société Générale CIB and Société Générale Côte d’Ivoire (SGCI) to arrange the financing, whereby SGCI has extended a loan in CFA francs (XOF) whose committed amounts will vary monthly depending on the characteris- tics of the client portfolio.
The loan is guaranteed by the African
Development Bank (AfDB) and CACIB, while the Grameen Crédit Agricole Foundation will be in charge of monitoring the social and environ- mental performance of the project.
The arrangement aims to take advantage of the rise of mobile money payments in Africa, especially in rural areas where banking, and indeed electricity, is rare or unreliable.
Brands such as BBOXX and payment systems such as M-Kopa have allowed more off-grid communities to access reliable power supplies via secured payments.
A recent study from Kleos Advisory estimates that 600mn people in Africa do not have access to power, a figure also shared by the AfDB.
Kleos said that with households spending an average of $200 per year on energy services and traditional cooking fuels, the market for off-grid solar solutions for families is estimated at $24bn.
NOA is an investment platform set up by Meridiam EDF and Mitsubishi, which aims to create new innovative financing solutions to provide the financial and operational support needed to develop a carbon-free world.
Meridiam itself is currently developing and financing 15 projects in Africa, with EUR-3bn ($3.34bn) of investment.It currently manages EUR7bn ($7.8bn) worldwide, with 75 projects and assets. ™
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