PEG Africa, an off-grid solar company in West Africa has successfully raised $13.5 million through a combination of debt and a Series B equity financing. The proceeds will be used to accelerate growth in Ghana and Ivory Coast, where PEG is already a sector leader, to reach 500,000 people.
PEG provides loans for solar home systems and other useful assets to off-grid households in West Africa. PEG is able to offer loans to off-grid customers earning $5-$10 per day, who are often rural and considered risky by banks and microfinance, using ‘pay-as-you-go’ technology.
This technology allows PEG to control assets remotely in the field while they are being repaid by customers. Importantly, by allowing customers to pay over time in small increments, PEG is able to reach many customers who would not otherwise be able to afford such life-changing products.
Hugh Whalan, CEO of PEG Africa, commented: “With this funding, PEG Africa will be able to reach a major milestone of extending energy and financing to half a million people. We are excited that we can now accelerate our growth plans in key West African markets. It is testament to the quality of the opportunity that all previous investors have participated in the Series B equity financing.”
PEG worked with SunFunder on a large multi-currency syndicated loan – an industry first – with participation from six lenders, including SunFunder, ResponsAbility, Oikocredit, Global Partnerships and Palladium Impact Investments. The transaction was advised by Nixon Peabody LLP.
Audrey Desiderato, COO of SunFunder, commented: “We have seen PEG Africa achieve major milestones in the last few years. By structuring and arranging this syndication on PEG’s behalf, we have provided scalable financing so they can focus on their core business.”
PEG raises Series B financing, bringing total funding raised to over $21million
PEG’s Series B was led by Blue Haven Initiative, with participation from EAV, Investisseurs & Partenaires (via IPAE 1 fund), ENGIE Rassembleurs d’Energies, Acumen and PCG Investments.
Lauren Cochran, Managing Director at Blue Haven Initiative, commented: “We are big believers in the potential for consumer finance and off-grid energy across Sub Saharan Africa. PEG is the team to back in West Africa and we are thrilled to be a part of their growing company.”
Isaiah Erhiawarien, West Africa