SunCulture, Mirova and Kaleidofin have closed a US$10 million securitisation of receivables linked to solar irrigation systems. The financing will help SunCulture recycle capital and expand access to solar-powered irrigation for smallholder farmers in Kenya.
The transaction provides additional financing for farmers who need irrigation to improve crop production and reduce their reliance on unpredictable rainfall. It also introduces a structured financing model that can help attract institutional capital to productive-use renewable energy and climate-smart agriculture in Africa.
Expanding Access to Solar Irrigation
The transaction comprises a US$10 million senior secured financing provided by the Mirova Gigaton Fund to a dedicated special purpose vehicle (SPV). The vehicle will acquire receivables originated by SunCulture Kenya.
SunCulture provides solar irrigation equipment through its Pay-As-You-Grow model. Farmers can access the systems through affordable repayment schedules, with insurance and warranty services included.
The financing allows the company to recycle capital that is tied up in longer-term customer receivables. This can support further financing for solar water pumps and allow more farmers to access irrigation.
“Access to irrigation in Kenya has never been limited by farmer demand. It has been limited by the lack of affordable, scalable solutions,” said Samir Ibrahim, Co-Founder and CEO of SunCulture.
“Solving that comes down to financing: whether it is available, what it costs, and how long it runs,” he added. “This structure addresses all three and gives us the confidence to scale customer financing on long-term, FX protected capital.”
Ibrahim said the faster recycling of capital would allow more farmers to access irrigation sooner.
Founded in Kenya in 2012, SunCulture has sold more than 85,000 solar irrigation systems and pumps. Its solutions help farmers reduce their dependence on rainfall while improving agricultural productivity, climate resilience and household incomes.
Creating a Model for Future Investment
Kaleidofin acted as Portfolio Monitoring Agent for the transaction. It will provide ongoing risk monitoring, performance reporting and covenant compliance oversight through its proprietary analytics platform.
The company also supported the transaction structure through receivables selection using its ki score, cash flow modelling and implementation through its Mauritius-based ki Platform PCC programme.
“This transaction breaks new ground for the productive-use energy sector in Africa,” said Rim Azirar, Deputy Head of Emerging Market Energy Transition at Mirova.
“We are proud to have worked alongside SunCulture and Kaleidofin to develop an innovative financing structure that required significant technical expertise and close collaboration,” Azirar said.
She added that the transaction could provide “a replicable blueprint for other companies” and help unlock long-term capital for productive-use energy and climate solutions across Africa.
Sucharita Mukherjee, Co-Founder and CEO of Kaleidofin, said the transaction demonstrates the role structured finance can play in underserved markets.
“The SunCulture transaction demonstrates how structured finance can channel institutional capital into underserved segments of the economy,” Mukherjee said.
She added that the structure supports “a more scalable financing ecosystem for productive-use climate assets in East Africa” and could help move the market from individual transactions towards repeatable and investable financing frameworks.
The transaction builds on Mirova’s existing partnership with SunCulture, following an earlier financing facility aimed at expanding access to sustainable irrigation solutions. It also highlights how structured finance can support the wider growth of renewable energy technologies serving African agriculture.
