British International Investment

Sun King Financing Limited

East AfricaInfrastructure

Sun King Financing Limited is a dedicated vehicle incorporated as part of the securitisation transaction with Sun King Kenya (legally Greenlight Planet Kenya Ltd). The vehicle issues debt notes to finance the purchase of solar home systems pay-as-you-go receivables from Sun King Kenya. The purpose of the entity is to enable Sun King to access stable local currency funding and sustain its growth.

Our investment

Description of the investment.

BII invested in Sun King Financing Limited as part of BII's support for Sun King Kenya (legally Greenlight Planet Kenya). Sun King Financing Limited is a dedicated vehicle created to purchase solar home systems pay-as-you-go receivables originated by Sun King Kenya. The transaction aims at strengthening Sun King Kenya's access to stable funding, support its growth and, ultimately, improving access to clean and affordable energy for primarily low-income peri-urban and rural consumers in Kenya.

Impact information

Applies to investments made from 2019 onwards. The tabs in this section define what we expect to achieve through the investment, assessing the potential impact of the investment against six dimensions of impact. You can find more details on our methodology of assessing impact here.

What?

Impact

Improve quality of life through extending access to affordable, reliable, and modern energy services (SDGs 7.1, 7.2) as well as access to mobile internet (SDG 9C)

How?

How?

Our investment will help to finance sales of Sun King’s pay as you go solar powered energy access and mobile phone products; ranging from small solar lanterns to larger solar home system kits that can power lighting, mobile phone charging and televisions.

Who?

Stakeholder Geography Characteristics
69% of Sun King’s customers live below USD 5.50 World Bank poverty line, 49% live below the USD 3.20 poverty line. 85% of the solar home system customers did not previously have electricity access.

How much?

Scale Depth/Duration

BII’s current investment in Sun King is expected to reach up to c.3.2 million households in total.

The investment is expected to have deep impact. Sun King’s customer survey indicates that at the household level, solar home systems: deliver four hours of additional light per day, 2x more radio listening time and 75% less kerosene use; and make 87% of customers feel safer and 74% feel healthier.

Contribution/additionality

Contribution/additionality

Local currency debt financing is not available in sufficient quantity from commercial lenders, who have a limited risk appetite to lend to off-grid solar companies.

Impact score

Impact score (at point of investment)

The Impact Score is a tool to help us manage our performance against our strategic impact objectives. It is designed to incentivise investments that support our productive, sustainable, and inclusive objectives. You can find out more here.

The Impact Score is published for investments made from 2022 onwards. The Impact Scores are calculated at the point of investment. We publish the Impact Scores of new investments annually, once the information has been externally assured by an independent third party.

10

Environmental and social information

  • Environmental and social summary

    A high-level description of the environmental and social aspects of the investment. This may include a summary of key environmental and social risks identified during environmental and social due diligence (ESDD); key elements of an environmental and social action plan (ESAP); or ways in which we plan to support the investee improve environmental and social standards, such as through their environmental and social management system (ESMS); as well as any other priority areas agreed with the investee.

  • Environmental and social risk

    A risk category rating, which indicates the level of environmental and social risk associated with an investment. For an explanation of the categorisations used, see here. We consistently provide an environmental and social risk category for all investments screened from 2023 onwards.

Environmental and social summary

We have been supporting the company in updating and upgrading their ESAP in order to further enhance their ESG performance especially regarding health and safety and supply chain management.

Environmental and social risk

Medium-Low

Reporting and Complaints Mechanism

The Reporting and Complaints Mechanism allows anyone outside BII to report alleged breaches of the business integrity or environmental and social provisions of BII’s Policy on Responsible Investing. This includes breaches made by BII, a BII investee, or a portfolio company of a fund in which BII has invested. The Reporting and Complaints Mechanism Rules are available here. Reports and complaints can be submitted by email to [email protected] or by mail. See more details on our Reporting and Complaints Mechanism here.

For any other general enquiries contact us at [email protected]

  • Key facts

    First published

    When the investment was first published on the website database.

    :
    October 2023
    Last updated

    When the last quarterly update of the website database occurred.

    :
    June 2024
    Project number

    An identifier number shared by investments in the same project.

    :
    D5977
    Status

    The current status of the investment (green flag for active and red flag for exited).

    :
    Active
    Region

    The geographical region where the country is located. We currently invest in Africa, South Asia, South East Asia and the Caribbean. In 2023, BII’s investment mandate was extended allowing it to invest in regional funds linked to Ukraine, with the majority of activity expected to begin post-war. Investments outside these regions were made prior to 2012 under previous investment mandates.

    :
    East Africa
    Country

    The countries where the investment delivers impact. Where impact is delivered in multiple countries, this is indicated.

    :
    Kenya
    Sector

    We prioritise those sectors that facilitate development and need our capital the most. Our priority sectors contribute towards many of the Sustainable Development Goals. They range from investing in the power infrastructure that will provide people with better access to electricity, to investing in financial institutions that direct capital to the individuals and businesses that need it the most.

    :
    Infrastructure

    We provide capital in the following ways: directly – through direct equity, direct debt, guarantees and other non-intermediated financial instruments; and indirectly – principally through investment funds.

    For direct investments and fund investments, this is the date BII committed capital to the investments. This is typically the date on which legal agreements are signed by all parties.

    For the portfolio companies of our fund investments, this is the date (either the month or the quarter) on which the fund committed capital to the portfolio company.

    For direct equity investments, this is the date at which British International Investment exited the investment.

    For debt investments, this is the date at which the final debt repayment was made.

    For funds, this is the date at which the fund was terminated.

    For underlying fund investments, this is the date at which the fund manager exited the investment.

    The total amount committed, per financial instrument, per investment, on the date BII becomes subject to a binding legal obligation to provide funding or assume a contingent liability. This information is provided in US dollars.

    For direct investments, this is the amount that BII has committed to the business or project. For fund investments, this is the amount BII has committed to the fund.

    The currency in which the investment was made.

    Investment type :
    Debt
    Start date :
    June 2023
    Amount :
    $20m
    Currency of investment :
    KES
    Domicile

    The company or investment fund’s place of incorporation.

    :
    Jersey
    Climate finance

    Indicates whether the investment is climate finance qualified or partially climate finance qualified and the type of climate finance (adaptation, mitigation or both). We define climate finance using the multilateral development bank (MDB) and the International Development Finance Club (IDFC) Common Principles climate finance methodology. See Common Principles for Climate Mitigation Finance Tracking and Common Principles for Climate Change Adaptation Finance Tracking. We provide the climate finance qualification and type for commitments from 2020 onwards, which is when we launched our Climate Change Strategy.

    :
    Partially qualified
    Climate finance type:
    Mitigation
    2X Gender Finance

    Indicates whether the investment is ‘2X qualified’ using the 2X Challenge criteria. You can find out more here. It only applies to investments made from 2018 onwards, when the 2X Challenge was first launched.

    :
    Fully qualified

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