Allen & Overy advises on a first-of-its-kind USD130 million securitisation in Kenya
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Allen & Overy (“A&O”) advised Citi, several leading development finance institutions and other commercial lenders (collectively, the “Lenders”) on a USD130 million sustainable securitisation.
The transaction will help to expand the accessibility of affordable solar home products to Sun King’s (formerly Greenlight Planet) Kenyan customers and diversify funding for Kenya’s off-grid solar energy sector. Solar products offer clean and reliable energy to Kenyans, particularly off-grid households without access to electricity.
The transaction, established for Sun King and arranged by Citi with support from the Lenders, is the first of its kind, as a commercial bank-led securitisation in Kenya. Under the transaction, eligible receivables deriving from Sun King customer contracts are sold to a special purpose vehicle (the “SPV”). The purchase of the receivables by the SPV is ultimately funded by the Lenders.
“A&O is delighted to advise Citi and the Lenders on their transaction with Sun King. Funding energy initiatives such as this is increasingly important to a growing number of people in Kenya, in light of the global climate crisis” said Salim Nathoo, Partner in A&O’s Securitisation practice. “This deal reinforces A&O’s commitment to supporting clients looking to employ sustainable financing solutions, and we hope will serve as a framework for future investments.”
Alex Moezi, Counsel, added: “The transaction demonstrates how securitisation can be a powerful tool to help unlock the capital needed to fund green energy initiatives at the scale the climate crisis requires. Advising Citi and the Lenders on this transaction, which Sun King will use to help improve peoples’ lives in Kenya, is a source of pride and motivation for the A&O team.”
Salim Nathoo and Alex Moezi led the A&O deal team in London alongside Associates Alex Norinho De Oliveira and Duygu Gul and Trainee Myles McSwiney. New York Partner John Hwang, Counsel Derek Poon and Associates Joshua Kopel and Tiffany Cheung supported the team on U.S. securities law aspects.