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Uganda’s leading off-grid solar energy startup “SolarNow” has aquired a USD$6 million syndicated credit facility to enable them expand their services as well as improve their Pay As You Go solar power access.

The facility was led by SunFunder with the participation of responsAbility Investments AG and Oikocredit. Each lender provided USD$2 million to the facility.

SolarNow sells solar systems to rural households and businesses in Uganda with a 24-month credit arrangement in order to make them affordable.

It provides a wide range of products ranging from household solutions, business solutions, corporate and farming solutions.

The USD 6million facility is SolarNow’s second structured asset finance instrument arranged by SunFunder, and the fifth transaction between the two overall.

“We are thrilled to continue building our fruitful relationship with SunFunder. So far, it has allowed us to focus entirely on our growth and profitability reaching more than 25,000 clients,” said Willem Nolens, SolarNow Chief Executive Officer.

“This new step of our partnership will enable us to continue tackling the massive unmet market opportunity in East Africa of providing affordable energy to millions of off-grid households, and to reach 70 per cent of Uganda’s off-grid population with solar home systems,” he added.

SunFunder CEO Ryan Levinson said customers such as SolarNow needed more scalable, less time-consuming financing options so they can focus on their core business of delivering solar energy.

“By leading syndications, SunFunder offers solar companies larger ticket size loans with less hassle, and gives investors a route into the market,” he said.

“We are delighted to build on our long-standing relationship with SolarNow and bring in additional investors.”