The African Development Bank Group (AfDB) is supporting the RAMP Warehouse Facility through the Sustainable Energy Fund for Africa and Clean Technology Fund.
African Frontier Capital established the platform with backing from the Bank, International Finance Corporation, Norfund and Soros Economic Development Fund.
The facility will finance eligible customer receivables and other asset-backed cash flows, releasing capital tied up in operating assets and allowing participating businesses to expand.
Although investors will provide funding in US Dollars, operators will receive local-currency liquidity against revenue generated locally. Foreign-exchange risk will be managed within the financing structure.
African Frontier Capital Chief Executive Eric De Moudt said the approach would allow several companies to access institutional capital through one platform instead of establishing separate financing structures. “We have developed a scalable securitisation platform that fundamentally changes how institutional capital can reach African businesses,” De Moudt said.
The facility combines a Luxembourg securitisation vehicle with a Mauritius protected cell company, creating ring-fenced portfolios for participating businesses.
The platform is evaluating eligible investments across Africa, with the first transaction expected to close within weeks.
International Finance Corporation Regional Industry Director for Africa Aliou Maiga said the facility could help companies expand solar energy and equipment used by households and businesses. “Expanding access to electricity is essential to creating jobs and unlocking economic opportunity across Africa,” Maiga said.
The facility supports Mission 300, the African Development Bank Group and World Bank Group initiative seeking to connect 300 million people in sub-Saharan Africa to electricity by 2030.
AfDB Director for Renewable Energy and Energy Efficiency Dr Daniel Schroth said the platform could transform off-grid solar financing.
The Bank said the facility would unlock capital, enable energy companies to expand and accelerate progress towards universal electricity access.
Standard Bank Group is providing cross-border financial-services and security-agency capabilities to help the platform mobilise capital.
African Frontier Capital has purchased more than $500 million in distributed renewable-energy assets.
The company completed a $50 million guaranteed green-bond private placement in June, supporting the expansion of solar access across sub-Saharan Africa.
Securitisation could become an important financing mechanism for distributed energy, electric mobility and other essential services across Africa, the AfDB concluded.
–AfDB/ChannelAfrica–
Image: AfDB
