Simusolar Issue 10: Tanzania - 8% Bond
Assuming at least two years of use per lantern, Simusolar has averted approximately 17,300 tonnes of black carbon and greenhouse gases through the sale of their solar fishing lights.
Since its incorporation, Simusolar have sold 10,390 systems varying from solar home systems (SHS) to solar fishing lights and water pumps.
Founded in 2014, Simusolar provides and finances accessible, affordable and energy-efficient systems designed for smallholder farmers and fishermen in Sub-Saharan Africa. The solar systems they provide are designed to meet the needs of rural households and smallholders and to help enable them to achieve their vision in an affordable and sustainable way.
Since their incorporation, Simusolar have sold 10,390 systems: 9,265 fishing lights, 356 pumps, 772 SHS with plans to expand to a further 64,000 units over the next 5 years. Environmental impact stats collected by Acumen measured that each lantern averts 1,630kg of greenhouse emissions and black carbon per year. Assuming at least two years of use per lantern, Simusolar has averted approximately 31,300 tonnes of black carbon and greenhouse gases through the sale of their solar fishing lights alone.
Key product information
Issuer: Simusolar Inc.
Issuing Country: USA
Investment target: £100,000
Minimum investment: £50
Maximum investment: No maximum
Maturity: 24 months
Expected interest rate: 8% per annum
Witholding tax rate: 30% (Applicable even when investing within the IFISA. It is possible for UK tax residents to reduce this withholding tax rate to 0% through completion of a W-8 BEN form. Investors are responsible for informing themselves as to their individual tax status. The W-8 BEN form will be sent to investors by Simusolar once the offer is funded.)
Interest payment frequency: 6 monthly
Capital repayment frequency: 6 monthly (from 12 months onwards)*
Financial instrument: Unsecured interest bearing bond
* For the first 12 months after the Issue Date, a "Grace Period" applies during which no capital repayments occur. The first capital repayment will take place 12 months after the Issue Date, and on a semi-annual basis thereafter. Please refer to the amortization schedule found on Page 33 of the offer document.
This is a bond issued by a single company (rather than a savings product) and therefore it is recommended that you are careful with the amount you invest.
You must read the investment memorandum (provided below) where a full statement of risks is presented.
See what Simusolar do
Simusolar are one of the pioneering solar companies supported by the Energise Africa initiative, a joint venture between Lendahand and Ethex
What the project investment will enable
In order to support Solar Businesses through the uncertainty caused by COVID-19, monies raised under this offer will be used to repay investors from an earlier campaign, freeing up cash to be utilised for other solar projects. This mechanism allows Simusolar to refinance their existing debt raised on Energise Africa on more favourable terms i.e. a 12 month grace period on capital repayments. Investors should be aware that this offer is for the specific purpose of easing short term cashflow of Simusolar, and that the increased uncertainty of investing into this campaign is mitigated to an extent through an increased interest rate of 8% relative to earlier Simusolar campaigns, which were offered at 7%
You can read Energise Africa's full approach to COVID-19 here.
Simusolar is looking to raise £100,000 from this bond issue and this will be used to repay investors from an earlier campaign that is due on 01/12/20.
Not only will your investment into this Simusolar offer allow them to manage their upcoming repayments, but will also allow Simusolar to continue in deploying further solar systems of varying size to benefit farmers, fishermen and households across Tanzania.
Social and environmental impact
Solar fishing light systems have been shown to have a significant impact on fishers' lives and the environment. Solar fishing systems produce fewer pollutants and greenhouse gases compared to other fuel-based systems whilst also reducing costs which would have otherwise been incurred from purchasing these fuels.
Social impact statistics taken from a business impact report conducted by Acumen was produced to look at how Simusolar's solar products have improved and impacted their customer's lives.
of fishing light customers said that they saved money and increased their overall income.
of respondents felt that their quality of life had improved with the addition of their Simusolar product.
of home system customers mentioned the convenience of having bright and continuous light at home.