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Allen & Overy advises African Frontier Capital on a USD30m solar receivables securitisation, in first-of-its-kind deal in Tanzania

Allen & Overy (“A&O”) advised African Frontier Capital (Mauritius) LLC (“AFC”) on a USD30 million solar receivables securitisation in Tanzania.

The transaction will help the Tanzanian subsidiary of d.light design Inc. (“d.light”), a leading global innovator of solar-powered products, to expand its pay-as-you-go business so that more low-income households in Tanzania can purchase the company’s solar-powered household products. Under the transaction, eligible receivables deriving from d.light’s customer contracts in Tanzania are sold to a special purpose vehicle which is in turn funded by a lender.

“AFC’s third securitisation in Africa with d.light (and a first in Tanzania) further demonstrates the use of securitisation as a scalable financing tool to help raise the capital required to support sustainable development goals in Africa. We are delighted to support AFC on this transaction” said Alex Moezi, Counsel in A&O’s Securitisation practice.

“We are happy we were able to assist on this first-of-its kind securitisation for AFC which we hope will help to sustain the off-grid solar energy industry in Tanzania” added Salim Nathoo, Partner in A&O’s Securitisation practice.

Alex Moezi led the A&O deal team in London (together with partner, Salim Nathoo) alongside Associates Umaang Trivedi and Sucheta Bhattacharya and trainee Camille Tournie.