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African Sunshine Can Now Be Bought and Sold on the Bond Market

  • First securitization of off-grid solar contracts into notes
  • Developer aims to raise up to $2 billion in next five years
The Sishen solar park in Kathu, Northern Cape, South Africa.
Photographer: Waldo Swiegers/Bloomberg

Africa’s off-grid solar industry has been turned into an asset class for the first time, bundling contracts for thousands of the sun-powered rooftop electricity systems to sell as bonds.

Dutch investor Oikocredit International and Persistent Energy Capital LLC, a New York-based merchant bank, jointly decided to try to replicate the U.S. model of securitizing residential solar panels. They are working with the London-based developer BBOXX Ltd.