UpOwa - Issue 9: Cameroon - 7.75% Bond
The total number of upOwa systems deployed has impacted the lives of approximately 70,000 people.
upOwa has sold over 14,000 solar lanterns and solar home systems
Founded in 2014, upOwa has a bold ambition; to make solar energy available to millions of households now living in the dark in Cameroon and across Central Africa. Since their incorporation upOwa has become the leading ‘pay-as-you-go’ solar company in Cameroon and is on the way to become a leader of the solar sector in Francophone African countries. They have successfully installed up to 14,000 solar home systems across Cameroon with the aim to reach a further 100,000 beneficiaries over the next 6 months, and 1 million by 2024.
Key product information
Issuer: upOwa SAS
Issuing Country: France
Investment target: £28,150
Minimum investment: £50
Maximum investment: No maximum
Maturity: 24 months
Expected interest rate: 7.75% per annum
Withholding tax rate: 0% (applicable to UK residents who do not invest within an IF ISA)
Interest payment frequency: 6 monthly
Capital repayment: Semi-annually (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. During this Grace Period, the Issuer will make Interest Payments on the Interest Payment Dates. 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 21 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, particularly in section 5. Risk analysis overview.
See what upOwa do
upOwa 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
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 01/08/20. This mechanism allows upOwa 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 upOwa, and that the increased uncertainty of investing into this campaign is mitigated to an extent through an increased interest rate of 7.75% relative to earlier upOwa campaigns, which were offered at 6.75%.
You can read Energise Africa's full approach to COVID-19 here.
UpOwa is looking to raise £28,150 from this bond issue will be used to repay investors from an earlier campaign that is due on 01/08/20.
Not only will your investment into this offer allow upOwa to manage their upcoming repayments, but you'll also be helping the company to grow and provide further employment opportunities. In 5 years, upOwa aims to rapidly expand and has set itself 3 bold global objectives; to provide electricity to 1 million beneficiaries, to create 1,000 direct jobs and to save 2,000 tonnes of CO2.
Social and environmental impact
Solar home systems & lanterns have been shown to have a significant impact on customers' lives and the environment. UpOwa has sold over 14,000 SHS in Cameroon since their incorporation, impacting the lives of roughly 70,000 people.
Social Impact statistics taken from GOGLA's July 2018 study 'Powering Opportunity: The Economic Impact of Off-Grid Solar'
of solar light users who previously used kerosene lamps experienced an improvement in their health
of customers purchasing a solar lantern or home system reported feeling safer since buying or using their product
of households with children report that they now have more time with which to do their homework
Using industry-recognised Global Off-Grid Lighting Association (GOGLA) impact metrics, upOwa has calculated the environmental impact of the 14,000 Solar Home Systems installed since its incorporation as follows:
Number of people who will enjoy clean energy access
Average new household saving on energy-related expenditure over solar product lifetime
Total greenhouse gas emissions offset per household over the lifetime of the product