DFC Guaranty Catalyzes $20 Million to Support Off-Grid Renewable Power

 

Financing aims to expand access to electricity for more than 600,000 people globally with a focus on Latin America and the Caribbean

 

WASHINGTON – U.S. International Development Finance Corporation (DFC) recently signed a credit guaranty on a portfolio of loans arranged by Trine AB expanding access to off-grid renewable power and lighting solutions. A $10 million DFC guaranty, with a focus on expanding electricity provision across Latin America and the Caribbean, will catalyze $20 million in loans arranged by Trine AB to bolster companies supporting solar home systems, commercial and industrial solar projects, and mini-grids.

"Reliable and affordable access to electricity is a significant global challenge, especially with the impact of the pandemic,” said Acting DFC Chief Executive Officer Dev Jagadesan. “DFC’s guaranty will help Trine AB finance innovative solutions that bring electricity to hundreds of thousands of underserved people, fostering economic growth and prosperity.”

“We’re very proud to be able to present this loan guaranty in collaboration with the U.S. International Development Finance Corporation, which will further enhance our offering toward investors and borrowers,” said Trine Chief Executive Officer and co-founder Sam Manaberi. “The new partnership will unlock the potential for more finance into the off-grid solar energy sector. This transaction emphasizes the importance of working together to bridge the financing gap to make clean energy accessible for all, and that Trine’s product solves a large problem.”

More than 800 million people globally remain without electricity access, while more than 2.8 billion are connected to an unreliable grid, predominantly in rural areas. Although the UN estimates that $45 billion per year is required to achieve universal electrification, less than half of that amount is currently being deployed, and only 1 percent is being used for decentralized solutions that can deliver energy access quickly and affordably to the world’s poorest people.

Off-grid renewable power and lighting solutions help to fill the electricity gap for underserved populations. Over the last several years, technology advancements in the sector have enabled the emergence of high-quality, cost-effective off-grid solar lighting and power products.

Trine AB, a crowdfunding platform launched in 2015, enables individual investors to finance off-grid solar projects across Sub-Saharan Africa, Asia, Latin America, and the Caribbean. The company is focused on helping eliminate energy poverty by bringing electricity to people living off the grid. Since its inception, Trine has arranged more than 100 loans to more than 30 unique borrowers totaling over $46 million.

DFC’s support will help Trine AB provide more financing to corporate borrowers especially in Latin America and the Caribbean, increasing the number of people, particularly in rural communities and island nations, with access to clean, reliable energy. Trine AB estimates that DFC’s guaranty will provide electricity to more than 600,000 people while offsetting close to 200,000 tons of carbon dioxide emissions.

This partnership is supported by the U.S. Department of State and the U.S. Agency for International Development (USAID), under the U.S. Department of State’s Caribbean Energy Security Initiative, which seeks to boost energy security and sustainable economic growth in the region, and the Digital Finance practice of USAID's Innovation, Technology, and Research Hub, which seeks to drive financial inclusion as part of USAID's Digital Strategy.

 

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U.S. International Development Finance Corporation (DFC) is America’s development bank. DFC partners with the private sector to finance solutions to the most critical challenges facing the developing world today. We invest across sectors including energy, healthcare, critical infrastructure, and technology. DFC also provides financing for small businesses and women entrepreneurs in order to create jobs in emerging markets. DFC investments adhere to high standards and respect the environment, human rights, and worker rights.