Dentons advises the mezzanine loan noteholders on the largest solar securitisation

Dentons has advised UK development finance institution and impact investor British International Investment, the Dutch development bank FMO and the Norwegian Investment Fund for developing countries, Norfund, acting as mezzanine loan noteholders, on Sun King’s US$156 million solar securitisation.

The securitisation, the first of its kind to be majority-funded by commercial banks, enables Sun King to raise long-term local currency debt by converting future customer repayments for financed solar products into investable assets, while also helping 1.4 million low-income homes and businesses transition away from using fossil fuels to supply electricity.

The complementary commitments from development finance institutions and commercial lenders will accelerate Sun King’s ability to equip more Kenyan households and businesses with green, reliable and modern energy, such as solar home systems and solar lanterns.

London Securitisation partner Alex Moezi who led the Dentons team advising on the transaction said: “We are proud to have advised the mezzanine loan noteholders on the English law aspects of this landmark transaction and to have worked with the Sun King team. This is another important step for the transition to renewable energy in Africa and demonstrates how securitisation, together with the collaboration of commercial and development finance institutions, can help to unlock local capital and deliver tangible benefits to underserved communities.”