SunFunder announced today the close of a $20 million debt financing facility with a values-aligned family office for ZOLA Electric (“ZOLA”), Africa’s leading renewable energy brand formerly known as Off Grid Electric. SunFunder contributed $5 million USD and the family office acted as the arranger and completed the balance.
SunFunder and ZOLA have worked together since 2014 and this financing marks the completion of their third transaction. Due to the ongoing success of these transactions, the relationship has grown with each new investment.
“SunFunder’s strength in building scalable relationships is a core aspect of our business and supports the long-term success of the industry,” said Ryan Levinson, SunFunder CEO. “We are excited about the next chapter in our relationship with ZOLA as we work together towards creating lasting change.”
The new investment will support ZOLA’s continued expansion across Africa and bring affordable, accessible and reliable solar energy to an additional 25,000 customers in four countries. Additionally, it’s estimated that between now and when the loan matures in mid-2021, 500,000 households will experience improved energy access. A reduction in the use of kerosene is also expected, which could result in 250,000 fewer tons of carbon dioxide output.
Bill Lenihan, co-CEO, ZOLA Electric said, “We are excited to announce the next chapter in our relationship with these two lenders. This investment will support our growth in new and existing markets, our continued support to the communities in which we operate and the ongoing development of our industry-leading product offering.”