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Afreenergy Solar has secured a $13.4 million senior debt facility from REPP 2, a Camco-managed fund. The company will use the money to refinance its operating rooftop solar assets and to build new solar PV and battery storage projects for commercial and industrial (C&I) customers in Senegal.
“Competitive, long-term project finance is critical to delivering energy at scale and at the best possible cost to African businesses. Combined with the equity secured earlier this year, REPP 2’s facility strengthens our ability to invest in, own and operate assets under long-term energy agreements and provides a strong foundation for expansion into new markets and larger industrial and mining projects,” said Christian Cachat, CEO, Afreenergy Solar.
Afreenergy Solar builds, owns and operates on-site solar and battery systems for businesses in Senegal. It sells the power to customers under long-term energy agreements.
Earlier this year, PIDG Project Development (InfraCo) committed $4.8 million in equity to the company. The new debt facility adds to that and gives Afreenergy Solar more room to grow its contracted assets.
The deal groups contracted assets from retail, food manufacturing, agro-industrial and infrastructure customers into one portfolio.
Customers are expected to cut their electricity costs by around 30%. Afreenergy Solar keeps ownership of the systems and runs them under long-term energy agreements.
Commercial and industrial energy users in Senegal still rely significantly on oil and other fossil-fuel-based sources; Afreenergy Solar’s model is designed to help decouple business growth from fossil fuel dependence.
REPP 2 says the deal fits its investment approach: strong commercial customers, proven technology and contracted revenues, set up so the company can repeat the model and keep growing.
The financing will lift Afreenergy Solar’s rooftop solar PV capacity from 2.7 MWp to 14.9 MWp, with 5.7 MWh of battery storage added. The portfolio is expected to avoid about 21,300 tCO2 a year. Customers should get more reliable power and be less exposed to grid outages.
“REPP 2 is backing Afreenergy Solar because it has built a scalable C&I model around long-term customer contracts and a growing portfolio of operating and development assets. This facility gives the business the balance-sheet capacity to accelerate deployment in Senegal and build a platform for larger industrial and mining projects across Africa,” said Benjamin Hugues, Director, Camco.
Camco is a climate and impact fund manager focused on sustainable finance. With over 30 years of experience, the organisation has been involved in more than 200 projects across 30 countries.
It specialises in supporting the transition to a net zero future in emerging markets. Earlier this month, REPP 2 provided a senior debt facility to Nigerian company Prado Power to build and run five solar mini-grids with battery storage. The loan was made through a special purpose vehicle (SPV).
