SOUTH AFRICA – responsAbility Investments, the Swiss impact investment manager, and BIO, the Belgian Investment Company for Developing Countries, have provided a US$10 million equivalent multi-currency loan to candi solar.
This loan will finance new solar projects in South Africa and India, mitigating climate change. The loan structure provides flexibility in terms of the allocation of funds between South Africa and India as well as in terms of the denomination currency, allowing candi to dynamically align its funding profile with the growth of its portfolio.
“Through our investment in candi we are supporting a fast-growing and dynamic company in the energy sector in South Africa and India,” Matthew McShane, Investment Officer at responsibility.
“We strongly believe in the potential of the commercial & industrial sector, which is at the core of our investment strategy. We are also pleased to partner with BIO on this transaction to enable further growth and impact opportunities.”
candi pushes the frontiers of solar financing, creating pioneering solar ownership models through innovative contractual solutions.
By taking the best aspects of the standard Power Purchase Agreement (PPA) model and marrying them with other advantageous elements, they provide simplicity, lower risk, and higher value.
“This investment is a premiere for BIO within the commercial & industrial distributed energy sector. candi solar is a partner of choice with a genuine entrepreneurial spirit, and a highly skilled staff,” Hardol Grisar, Infrastructure Investment Officer at BIO, said.
While the possibilities vary by region, candi is able to use its localised expertise to propose solutions that are best suited for the customer and the context.
“With the successful completion of this transaction, we have not only gained access to new capital but also created a scalable and flexible funding channel through which we will be able to accommodate additional investments in the future,” Fabio Eucalipto, Finance Director at candi said.
“This is a central component of our plan to deploy a three-digit USD million amount into solar assets by 2024.”
In addition to the environmental benefits of financing solar assets that would avoid an estimated 26,500 tons of CO2-equivalent per annum, the investment in candi falls under the leadership criteria of the 2X Challenge – because of candi’s contribution to address gender disparities and enhance women’s economic empowerment, particularly in renewable energy.
candi solar intends to continue working closely with both responsAbility and BIO to further strengthen its efforts in this regard.