SunFunder starts local currency lending
SunFunder announces new local currency lending capabilities for off-grid and grid-deficit solar
Over the last five years, SunFunder has completed $25 million of loans to more than 30 solar companies in the beyond the grid sector. Until now all of that debt finance has been issued in US dollars.
Today that is changing. We are delighted to announce that we now have the capability to offer local currency loans, thanks to a new partnership with hedging facility MFX Solutions.
“Local currency loans have been a top need for our customers,” said Ryan Levinson, SunFunder’s Founder and CEO. “We’re excited to be able to provide new financial solutions and even more value to the sector.”
Debt capital in local currencies is important because it solves the mismatch between the currency that solar companies receive from their customers, and the currency that solar companies need to repay international lenders like SunFunder.
In many developing countries, exchange rate volatility and local currency depreciation increases the risk both for solar companies and their investors. This can increase the costs passed through to end users and ultimately lower the sector’s overall energy access impact.
SunFunder will now be able to offer its solar customers the option to access working capital, receivables financing and other structured finance solutions in either US dollars or relevant local currencies. The rates on offer for local currency will vary depending on MFX’s own market-based hedging costs.