Sollatek Kenya Issue 14: 6% Bond

Refinancing
24 months to mature 6% interest

Sollatek Kenya Issue 14: 6% Bond

£40,000
Raised

76
Investors

0
Days to run

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invested 4 million people

The total number of Sollatek systems deployed has impacted the lives of approximately 4 million people.

households 835,000 units

Sollatek has sold over 835,000 solar lanterns and solar home systems

Sollatek is 100% Kenyan owned and managed, and has been operational in East Africa for over 30 years. During this time the market for solar products has changed significantly and with their experience and local knowledge Sollatek is well positioned to help the estimated 29 million individuals in Kenya who are currently 'off-grid' gain access to clean, reliable energy. Over the last 8 years Sollatek has sold over 835,000 solar lanterns and solar home systems (SHS).


About Sollatek

  • Sold more than 835,000 lanterns and home solar systems over the last 8 years
  • Providing approximately 4 million people with access to solar energy
  • Sole agent for Sollatek UK products and owner of the Sollatek franchise in East Africa
  • Products are sold through a network of 250 outlets in Kenya
  • Directly employs 45 staff across Kenya
  • Provides after-sales support from 8 service centres across East Africa
  • Operational since 1985 with head office in Mombasa, Kenya
  • Turnover of approximately £4.1 million in 2019
  • Key product information

    Issuer: Sollatek Electronics (Kenya) Ltd

    Issuing Country: Kenya

    Investment target: £40,000

    Minimum investment: £50

    Maximum investment: No maximum

    Maturity: 24 months

    Expected interest rate: 6% per annum

    Witholding tax rate: 15% (applicable to UK residents who do not invest within an IF ISA)

    Interest payment frequency: Semi-annually

    Notional repayment: Semi-annually (from 12 months onwards)*

    Financial instrument: Unsecured interest bearing bond

    Security: Unsecured

    * For the first 12 months after the Issue Date, a "Grace Period" applies during which no capital repayments occur. The first capital payment 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 21 of the offer document.

    Key risks

    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.

    Documents

    What the project investment will enable

    Further to our recent communication concerning the effect of COVID-19 on our Solar Partners, monies raised under this offer will be used to repay investors from an earlier campaign that is due on 01/06/20. This mechanism allows Sollatek 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 Sollatek, and that the increased uncertainty of investing into this campaign is mitigated to an extent through an increased interest rate of 6% relative to earlier Sollatek campaigns, which were offered at 5%.

    You can read Energise Africa's full approach to COVID-19 here.


    Sollatek Electronics Kenya

    Sollatek is looking to raise £40,000 from this bond issue will be used to repay investors from an earlier campaign that is due on 01/06/20.


    Sollatek prides itself on offering quality products at an affordable price and they offer free courier delivery on their products as well as a 2 year warranty (even without proof of purchase). From their 8 regional services centres across Kenya, Tanzania, Uganda and Burundi they can offer superior after sales care with most faults fixed within 72 hours.


    Social and environmental impact

    Solar home systems & lanterns have been shown to have a significant impact on customers' lives and the environment. To date, Sollatek has sold more than 835,000 systems & lanterns across East Africa, and has impacted the lives of around 4 million people.

    Social Impact

    Social Impact

    The installation of solar home systems to off grid families has significant impacts that can be divided into the following categories: lifestyle, flexibility, health and safety, and economic. The following improvements below are associated with installation of Sollatek's solar home systems and access to reliable, renewable energy in general:

    610%

    Increase in available hours of light per household, associated with Sollatek's 30-40W systems

    10-15%

    of Sollatek's customers utilise their system to operate a business from their home

    ~50%

    percentage of entrepreneurs participating in Sollatek's EEP project who are female, with top sales mostly attributable to them

    16%

    of individuals using a SHS for business purposes report that they are able to work for longer hours

    Environmental Impact

    Environmental impact

    Using industry-recognised SolarAid impact metrics, Sollatek has calculated the environmental impact of the total number of systems installed since their incorporation as follows:

    4 million

    Number of people who have benefited from clean energy access

    60%

    respondents to a Power Africa survey reported reduced energy spend and kerosene use as the most appreciated benefit of SHS

    1.1tonnes

    Annual total CO2 emissions offset per household

    • pdf

      Offer Documents

      Sollatek Kenya - Issue 14 - Offer Document  (Log In to download)

     

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