PEG Africa completes $13.5 million fundraise
PEG Africa has announced it has successfully raised $13.5 million through a combination of debt and a Series B equity financing. The proceeds will be used to accelerate growth in Ghana and Ivory Coast, where PEG is already a sector leader, to reach 500,000 people.
PEG provides loans for solar home systems and other useful assets to off-grid households in West Africa. PEG is able to offer loans to off-grid customers earning $5-$10 per day, who are often rural and considered risky by banks and microfinance, using ‘pay-as-you-go’ technology. This technology allows PEG to control assets remotely in the field while they are being repaid by customers. Importantly, by allowing customers to pay over time in small increments, PEG is able to reach many customers who would not otherwise be able to afford such life-changing products.
Hugh Whalan, CEO of PEG Africa, commented, “With this funding, PEG Africa will be able to reach a major milestone of extending energy and financing to half a million people. We are excited that we can now accelerate our growth plans in key West African markets. It is testament to the quality of the opportunity that all previous investors have participated in the Series B equity financing.”
PEG worked with SunFunder on a large multi-currency syndicated loan - an industry first - with participation from six lenders, including SunFunder, ResponsAbility, Oikocredit, Global Partnerships and Palladium Impact Investments. The transaction was advised by Nixon Peabody LLP.
Audrey Desiderato, COO of SunFunder, commented, “We have seen PEG Africa achieve major milestones in the last few years. By structuring and arranging this syndication on PEG’s behalf, we have provided scalable financing so they can focus on their core business.”