PEG Africa, an Accra-based pay-as-you-go solar energy company has sealed a $4-million debt financing deal from a $15-million multi-currency facility led by UK development finance institution CDC Group. Also, backed by existing lenders SunFunder and ResponsAbility, PEG Africa explained in a statement that it will use the capital to expand operations in Senegal where it says it has thousands of customers.
PEG Africa was founded in 2013 by Hugh Whalan and Nate Heller
Expanding to Senegal
Whalan, the PEG Africa’s CEO, said Senegal has been growing “far quicker than expected” and has reached profitably within its first year.
“With the continued backing of CDC Group, we expect our growth in Senegal to continue. Importantly, we believe that we will be able to apply our learnings and expansion playbook to yield superior results as we grow into future markets,” he added.
Why Debt Financing?
Whalan said the fact the company is increasingly raising debt as opposed to equity investment, and its ability to secure multiple facilities from lenders like CDC Group, is testament to the increasing strength and the financial sustainability of its business.
Last month PEG Africa raised $5-million in debt funding from the EU-funded Electrification Financing Initiative (ElectriFI).
In March the company raised a $25-million Series-C round which at the time it said it intended to use for off-grid solar expansion in Ivory Coast, Ghana and Senegal.
About PEG Africa
PEG touts itself as employing nearly 1000 people across Ghana, Ivory Coast and Senegal and has won numerous awards, including the prestigious Ashden International Award for excellence in sustainable energy, and has been named as one of the “fastest growing companies in Africa” by the London Stock Exchange.
Founded in 2013 by Hugh Whalan and Nate Heller, PEG Africa currently provides 400 000 daily users in Ivory Coast, Ghana and Senegal with credit for solar home systems via its pay-as-you-go financing model.
Charles Rapulu Udoh
Charles Rapulu Udoh is a Lagos-based Lawyer with special focus on Business Law, Intellectual Property Rights, Entertainment and Technology Law. He is also an award-winning writer. Working for notable organizations so far has exposed him to some of industry best practices in business, finance strategies, law, dispute resolution, and data analytics both in Nigeria and across the world