British International Investment (BII), UK’s development finance company (DFI) and impact investor, in association with Stanbic Bank Kenya, which is part of the Standard Bank Group, have both promised to help Sun King.
Sun King is a clean technology start-up that makes solar energy systems that don’t connect to the grid. The promise includes a large funding round of $130 million and a $20 million facility for working capital.
It has gotten help from well-known development finance institutions (DFIs) and business lenders to help it grow.
Absa, BII, FMO, Norfund, Stanbic Bank Kenya, the Trade and Development Bank (TDB), and Citi have all put money into this project.
These organizations have given Sun King money, which shows that the company has the ability to grow in the future.
By giving Sun King an extra $20 million in operating capital, BII and Stanbic Bank hope to help the company meet growing demand in an underserved market. With this extra money, Sun King will be able to make more of its high-quality, affordable goods and make more of them for its target audience.
The focus is on meeting the growing demand for reliable and cheap energy solutions on the market. This will help Sun King reach more underserved communities and make a bigger difference there.
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Why Kenya needs this
Sun King has been a big part of giving people in rural areas access to energy. It has helped more than 100 million people get power.
It’s recent investments should make it easier for the company to help more homes and businesses in Kenya get reliable and sustainable energy options. With these efforts, Sun King will be able to reach more people and help make the country’s energy landscape greener and more modern.
About 30% of the people in Kenya do not have access to power at the moment. With this facility, Kenyan homes and companies will be able to switch to clean, reliable, and cost-effective solar energy.
This change will not only fix the lack of electricity, but it will also give people and companies access to reliable energy and new appliances.
Sun King co-founder Anish Thakkar said, “For many years, British International Investment and Stanbic have been important partners in Sun King’s mission to provide clean, renewable energy to people who don’t have it.” Sun King products provide power and light to 20% of Kenyans. British International and Stanbic’s support helps Sun King fulfil Kenyan clients’ increasing energy needs and better assist the underserved.
BII’s Head of Energy Access and Efficiency, Geoffrey Manley, said, “Once again, we are proud to support Sun King and are happy to take part in BII’s third funding round for the company.”
“We reiterate our commitment to fund climate change, make energy more accessible, and improve Kenyan households’ quality of life with other investors.”
“These commitments work together to give more solar home systems to people who don’t have access to or have limited access to traditional energy sources.” Energy-efficient technologies and greater commercial funding will help the sector flourish.”
Rentia van Tonder, Standard Bank’s Global Head of Power, said, “Africa is well-positioned to benefit from the green economy, and we are proud to have worked with Sun King to make this historic transaction possible.” It illustrates again that the Standard Bank Group is committed to long-term growth in Africa’s renewable energy market.
“Going net zero and speeding up green energy use are key value propositions for our clients.” Because of this, we prioritise sustainable finance to develop African economies. We’re the biggest bank in the region and can lead the way in taking advantage of Africa’s long-term structural trends.
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About Sun King
Sun King is an expert at designing, selling, installing, and financing modern solar energy options. These solutions are for people, households, and businesses that don’t have access to, can’t rely on, or can’t pay to connect to the traditional electric grid.
It is the world’s biggest off-grid solar energy company, and DFIs like BII help fund its early stages. In 2022, Sun King was able to raise $330 million through a Series D stock funding round. General Atlantic, M&G, and Leapfrog were among the private equity backers who took part in this round of funding.
BII and Stanbic Bank Kenya have provided financing for Sun King’s growth, which has changed over time. Both banks have taken a flexible, patient, and long-term approach to banking in order to keep up with Sun King’s growing business. By working together, BII and Stanbic Bank Kenya have been able to help Sun King grow and be successful in offering sustainable energy solutions.