West African solar company PEG Africa has raised US$13.5 million in funding through a combination of debt and Series B equity financing which will be used to accelerate growth in Ghana and Ivory Coast to reach 500,000 people.
PEG, which raised a total of US$9 million in funding last year via two different deals, provides asset-based financing for solar assets to consumers who lack both access to reliable electricity and formal banking services.
The company provides loans for solar home systems and other useful assets to off-grid households using pay-as-you-go (PAYG) technology.
The latest round takes PEG’s total funding to over US$21 million, with the Series B aspect led by Blue Haven Initiative with participation from EAV, Investisseurs & Partenaires, ENGIE Rassembleurs d’Energies, Acumen and PCG Investments.
“With this funding, PEG Africa will be able to reach a major milestone of extending energy and financing to half a million people. We are excited that we can now accelerate our growth plans in key West African markets. It is testament to the quality of the opportunity that all previous investors have participated in the Series B equity financing,” said Hugh Whalan, chief executive officer (CEO) of PEG Africa.
“We are big believers in the potential for consumer finance and off-grid energy across Sub Saharan Africa. PEG are the team to back in West Africa and we are thrilled to be a part of their growing company,” said Lauren Cochran, managing director at Blue Haven Initiative.
PEG also worked with SunFunder on a large multi-currency syndicated loan, with participation from six lenders, including SunFunder, ResponsAbility, Oikocredit, Global Partnerships and Palladium Impact Investments. The transaction was advised by Nixon Peabody LLP.
“We have seen PEG Africa achieve major milestones in the last few years. By structuring and arranging this syndication on PEG’s behalf, we have provided scalable financing so they can focus on their core business,” said Audrey Desiderato, chief operating officer (COO) of SunFunder.