SunFunder has announced that OPIC committed $25 million to its new fund. "We are delighted to announce that OPIC has committed $25 million to the Solar Energy Transformation (“SET”) Fund," wrote SunFunder.
OPIC, Overseas Private Investment Corporation, is a US government development finance institution. While SunFunder is a solar energy finance business that provides debt financing.
The SET Fund is a 9-year fund and SunFunder’s eighth and largest debt facility to-date.
This is the first commitment SunFunder is getting for the fund for which it is looking to raise $85 million. "OPIC’s investment consists of both junior and senior tranches, which will help catalyze private capital and impact-focused investors to achieve a target fund size of $85 million."
According to SunFunder, the fund will make "individual loans to more than 50 off-grid solar companies located in Africa and Asia." These, in turn, will "enable more than three million people to gain access to clean, affordable energy and lighting."
But, this isn't the first time OPIC is committing investment to SunFunder. OPIC before committed $15 million in financing and $10 million in political risk insurance to another fund managed by SunFunder, the Beyond the Grid Solar Fund.
OPIC, before, has also provided funding to impact conscious projects across emerging markets.
In July 2018, Tugende - in Uganda - closed $5 million in debt financing from OPIC. Mobius Motors, a manufacturer of cars in Kenya, also secured an $11 million debt facility from OPIC. While Twiga Foods was a beneficiary of deals worth $238 million between OPIC and Kenya mid this year.