Burges Salmon advises EDFI MC on African solar homes systems financing
The firm has advised EU-funded impact investing facility EDFI ElectriFI on its financing of PEG Africa’s social-impact solar home systems.
Burges Salmon’s Project Finance team has advised Brussels-based EDFI Management Company on the multi-million USD denominated multi-tranche junior term loan facilities made available to PEG Africa.
EDFI Management Company was created by 15 European Development Finance Institutions to manage investment solutions on their behalf. It notably administers the Electrification Financing Initiative (EDFI ElectriFI), a social impact investment facility that provides finance to projects targeting new and improved electricity connections as well as increasing generation capacity from sustainable energy sources in emerging markets.
PEG Africa provides life-changing first-time access to clean solar electricity for off-grid rural homes in West Africa. This is achieved by distributing innovative Pay-As-You-Go solar home system technology to consumers who lack access to reliable electricity and formal banking services. PEG Africa delivers affordable energy for those who need it most; in Ghana, Senegal, Mali and Côte d’Ivoire.
This transaction will enable PEG Africa to further scale-up its provision of these rooftop solar homes systems in Côte d’Ivoire, significantly improving the quality of life for hundreds of thousands of Ivorians.
The Burges Salmon team advising EDFI Management Company on this transaction was led by partner Stuart McMillan and solicitor Luke Addison from the firm’s Project Finance team. Both Stuart and Luke have extensive experience advising on renewable energy transactions, specifically including the financing of solar homes systems in Africa.
Burges Salmon partner Stuart McMillan
Lionel Dieu, Senior Investment Officer of EDFI ElectriFI, says: “Whilst meeting the highest legal standards, the collaborative approach of Burges Salmon was very efficient too. Their responsiveness enabled us to meet our client request and therefore fulfil our mission.”
Hugh Whalan, CEO of PEG Africa, adds: “We are thrilled that, with the completion of the transaction, we can continue to grow the business and focus on bringing energy solutions to our underserved customers.”