Sollatek Kenya Issue 17: 5% Bond

24 months to mature 5% interest

Sollatek Kenya Issue 17: 5% Bond

£35,000
Raised

27
Investors

0
Days to run

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invested £200 invested

For every £200 invested into this campaign Sollatek will be able to source and distribute a solar home system, which a Kenyan family can pay for in affordable instalments over 18 -24 months

households 175 units

Sollatek will be able to distribute and install 175 Solar Home systems (SHS) from this raise

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 48 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 £4.2 million in 2019
  • Named one of Kenya’s Top 100 Mid-Size Company in East Africa by KPMG Kenya (also in 2013, 2015, 2017 & 2019)
  • In 2019 Sollatek, in partnership with Energy4Impact, was awarded a £1.75m project to install solar systems on 250 primary schools and 50 health clinics.
  • Key product information

    Issuer: Sollatek Electronics (Kenya) Ltd

    Issuing Country: Kenya

    Investment target: £35,000

    Minimum investment: £50

    Maximum investment: No maximum

    Maturity: 24 months

    Expected interest rate: 5% per annum

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

    Interest payment frequency: Semi-annually

    Notional repayment: Semi-annually

    Financial instrument: Unsecured interest bearing bond

    Security: Unsecured

    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

    Every £200 invested will allow Sollatek to make a solar home system available to a family in rural Kenya that would otherwise be out of their financial reach. These systems are typically repaid over an 18 to 24 month period after which the family owns the system outright and can continue to enjoy the benefits of the clean energy produced.


    A unique selling point of Sollatek is that it benefits from a strong brand name and is known for its outstanding aftersales services. It guarantees all repairs are done within 72 hours for products within their guarantee period. The manufacturers’ guarantee periods are the same length as offered to the end-consumer.


    Sollatek works with two solar off grid equipment suppliers, NIWA Solar and Greenlight Plant to offer a range of portable solar lanterns, phone charging lanterns, solar home systems, and solar TVs. For all power protection products, Sollatek UK designs and manufacturers AVR, Guards UPS, SVS etc. Its solar panels, batteries, inverters and charge controllers are manufacturered by the French owned EcoGreen. The Company runs comprehensive due diligence and market research on suppliers to ensure high quality products at affordable market prices. Sollatek has had an average of 3+ years relationship with most of their suppliers


    Sollatek aims to raise £35,000 of investment, enabling them to purchase 175 units to help approximately 875 individuals in Kenya. Sollatek are currently working with community groups in Western Kenya to help sell and distribute these units.

    Sollatek Electronics Kenya

    With money raised from this campaign Sollatek will be focusing their efforts on the “underserved” areas of Kenya and will work with community groups in Western Kenya to help sell and distribute their solar home systems.


    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 installing 175 solar home systems as follows:

    875

    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 17: Offer Document  (Log In to download)

     

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