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UK government funded REPP (Renewable Energy Performance Platform) has attained another successful investment exit.
REPP has recovered its initial investment into mini-grid developed ARC (initiated in 2019). It will now continue supporting the company through a partial equity loan.
REPP’s convertible loans in 2019 and 2020 enabled ARC Power to pursue a large portfolio of solar mini-grids in Rwanda.
The early-stage financing helped the British-based developer finalise the initial phase of the project. They constructed four mini-grid generation systems serving six distribution networks. These networks now supply electricity to 14 villages in Bugesera and Gatsibo Districts. They have connected more than 10,000 people, 153 microbusinesses and 3 critical services to electricity for the first time.
Rwanda has set a target of universal energy access by 2024. ARC Power is about to collaborate with the Rwandan government to accelerate progress by building grid-connected mini-grids and standalone systems.
Outside of Rwanda, ARC Power recently secured the largest national concession to roll out mini-grids in Mozambique through its in-country partners. Construction is about to start on a mini-grid in Gaza Province. This will connect more than 3,000 people to electricity for the first time.
ARC Power secured existing financing from an existing funder for that project. The funding was mobilised as a direct result of REPP’s equity conversion and the increased confidence this created in the mini-grid developer.
Karl Boyce, CEO of ARC Power, said: “Having successfully delivered the first phase, ARC Power has secured a significant pipeline across four countries in East and Southern Africa, and we are now working on our Series-A to allow us to really scale in line with our vision of building a pan-African clean utility business.”
Under the exit deal, the repayment will settle ARC Power’s debt to REPP (which is managed by Camco). The equity conversion will further support ARC Power’s expansion plans in Rwanda.
Ben Hugues, Camco Investment Director and REPP Lead said: “When REPP first invested in ARC Power it was not without its risks, but we saw great potential in the company and its leadership. Today our faith has been rewarded, with our early-stage investments playing a critical role in crowding in additional lenders and enabling ARC Power to deliver on its phase one objectives.”
“The repayment of the loans, with partial conversion of the accrued interest into equity, secures REPP’s capital and retains significant upside exposure,” said Hugues. |
