OPIC Endows Primary Funding for SunFunder’s $85 Million Solar Energy Transformation Fund

The Overseas Private Investment Corporation (OPIC) has announced that it has completed a preliminary investment into SunFunder’s $85 million (₹6.04 billion) Solar Energy Transformation Fund. The fund supports electricity access through the use of solar power in Sub-Saharan Africa and India.

The supporting is part of a $25 million obligation of senior and junior debt that OPIC had entered back in September 2018. The OPIC pledge would help catalyze other impact-focused investors to accomplish a target fund size of $85 million.

Since OPIC has dedicated to the financing, Calvert Impact Capital and Ceniarth have also devoted $7.5 million (₹533.54 million) and $5 million (₹355.69 million) loans correspondingly. The IKEA Foundation has also provided a grant of $5 million (₹355.69 million) as catalytic capital for the fund, conveying the total elevated to $42.5 million.

“This project will advance OPIC’s mission of empowering people in some of the world’s poorest countries by bringing affordable electricity to remote areas that are not connected to an electricity grid. As we have seen from the additional financing raised, it is also a testament to OPIC’s ability to mobilize additional investment,” believed Ray W. Washburne, President and CEO of OPIC.

According to assessments, the Solar Energy Transformation Fund is estimated to advance energy access for three million people and alleviate 480,000 tons of carbon emissions yearly over the nine-year life of the fund.

“SunFunder has now closed over $100 million (7.11 billion) in diversified solar debt funds, and the Solar Energy Transformation Fund opens up new opportunities. As our largest fund and with a 9-year tenor, the Solar Energy Transformation Fund increases both the range and size of debt capital offerings that we can provide, especially for productive use solutions and commercial projects,” supposed Ryan Levinson, SunFunder founder and CEO.

SunFunder projects that the Solar Energy Transformation Fund will make separate loans to more than 50 off-grid solar companies. As per reports, SunFunder has arrayed $65 million of debt financing to 46 solar borrowers in Africa and Asia.