Clifford Chance advises Sun King on US$156 million securitisation supporting the delivery of solar power for over a million consumers in Kenya

Global law firm Clifford Chance has advised Sun King, the world’s leading solar home system provider, on its US$156 million (KES equivalent) securitisation, the largest and first majority commercial-bank-backed deal of its kind in Sub-Saharan Africa outside South Africa. The deal will provide an estimated 1.4 million low-income households and businesses with electricity access. It builds on the company’s award-winning $130 million securitisation completed in 2023.

The transaction was arranged and structured by Citi, with Stanbic Bank Kenya Ltd (part of the Standard Bank Group) acting as placement agent. The securitisation is backed by ABSA, Citi, The Co-operative Bank of Kenya, KCB Bank Kenya Limited, and Stanbic Bank Kenya Ltd funding the senior tranche, with British International Investment, the Dutch development bank FMO, and Norfund (the Norwegian Investment Fund for developing countries) funding the mezzanine tranche.

Acting as English law review counsel, Clifford Chance advised Sun King on the structuring and execution of the transaction.

Krishna Swaroop, Global Chief Financial Officer at Sun King, commented:
“This milestone transaction is a testament to the power of partnership and innovation in expanding energy access across Africa. By mobilising both local and international capital, we are able to accelerate the deployment of affordable, reliable solar solutions to millions of off-grid households and businesses. We are grateful to our financing partners and advisers for their commitment to our mission of powering brighter lives and supporting Kenya’s progress towards universal electricity access.”

Simeon Radcliff, partner at Clifford Chance, added:
“This landmark transaction demonstrates the power of innovative finance to accelerate universal energy access in Africa. As highlighted by the International Energy Agency, Kenya is leading the way in expanding electricity access through distributed solar solutions. We are very pleased to have supported Sun King and to have worked alongside our fellow advisers in delivering a structure that mobilises both local and international capital to drive sustainable impact at scale.”

The Clifford Chance team was led by partner Simeon, with support from senior associates Fadzai Mandaza, Inês Perez Sanchez, and associate João Ramalho Dias. Read more about the deal here.