AFC Warehouse Facility - PAYGO Receivable Financing

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 Africa Frontier Capital (“AFC”) is establishing a multi-originator warehouse facility (“WHF”) to provide off-balance-sheet financing to distributed energy service companies (“DESCOs”) across eligible Sub-Saharan African countries operating under the pay-as-you-go (“PAYGo”) model. The WHF is expected to raise up to US$125 million from a group of lenders, comprising up to US$100 million in senior debt and up to US$25 million in subordinated debt, providing a credit enhancement to senior lenders (the “Project”). By addressing a critical financing bottleneck in the off-grid solar PAYGo sector, the Project is intended to enable DESCOs to scale affordable clean energy solutions for low-income households, crowd in private capital, and accelerate the transition away from polluting fuels through a scalable and replicable financing platform.