OPIC to provide $25 million funds for off-grid solar projects in Asia and Africa

The Overseas Private Investment Corporation (OPIC), the US government’s development finance institution, has committed an amount of $25 million towards the Solar Energy Transformation (SET) Fund LLC, which will give loans to off-grid solar products and solutions providers in sub-Saharan Africa and Asia. The OPIC commitment consists of both a senior and a subordinated tranche, which will help catalyse other impact-focused investors to achieve a target fund size of $85 million. The SET Fund is managed by SunFunder, a solar energy finance organisation that focuses on providing off-grid solar lighting and energy solutions in developing countries. SunFunder has estimated that with the help of this investment, the SET Fund will be able to give individual loans to more than 50 off-grid solar companies, which in turn will enable more than 3 million people to gain access to clean energy and lighting. Prior to this, OPIC had committed $15 million in financing and $10 million in political risk insurance to Beyond the Grid Solar Fund, another fund managed by SunFunder, for financing off-grid companies located in Africa, India and the Pacific Islands. Beyond the Grid Solar Fund has provided loans to 16 off-grid solar companies, helping 1.55 million people come out of energy poverty.

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