NEoT Offgrid Africa’s pilot receivables securitisation program for financing solar home systems in Cote d’Ivoire

NEoT Offgrid Africa's pilot receivables securitisation program for financing solar home systems in Cote d'Ivoire

Orrick, Gide, Dogue Abbé Yao & Associés, Asafo &Co RCI advised on the operation.

NEoT Offgrid Africa (NOA) has closed a receivables securitization program with Zola Electricity Côte d’Ivoire (ZECI – a joint venture between EDF and Zola Electric) which aims to equip more than 100,000 households with solar home systems in Côte d’Ivoire, mainly in rural and peri-urban areas. NOA, majority-owned by Meridiam, is the first investment platform to set up a receivables securitization program in the financing of off-grid energy projects in Africa. 

The transaction resulted in an €18 million loan being granted to NEoT Côte d’Ivoire.

Société Générale, Crédit Agricole CIB acted ss co-arrangers and the African Development Bank as guarantor on the first large-scale local currency securitization arrangement.

Through this innovative financing mechanism, NOA enables ZECI to focus on the commercialization and deployment of clean energy supply solutions in remote areas. With its securitization program, NOA bears financial risks related to the “rent-to-own” scheme whereby customers can become owners of the solar kits at the end of the rental period. In order to reach a mostly unbanked population, payments are made via a mobile money platform.
NOA is leading the financial structuring of the entire project. As part of this operation, NOA has mandated Crédit Agricole CIB (CACIB), Société Générale CIB and Société Générale Côte d’Ivoire (SGCI) to arrange the financing, whereby SGCI has extended a loan in local currency (XOF) whose committed amounts will vary monthly depending on the characteristics of the client portfolio. The loan is guaranteed by the African Development Bank (AfDB) and CACIB, while the Grameen Crédit Agricole Foundation will be in charge of monitoring the social and environmental performance of the project.

NEoT Offgrid Africa (NOA) is an investment platform designed to support Africa’s energy transition by addressing the issues of energy access and zero-emission mobility. 

Gide assisted NEoT Offgrid Africa with a team led by Marie-Bouvet Guiramand (Photo) and including Perrine Delandre, Edouard Bourguet (Project), Julien David, Armelle Royer (Corporate). 

Dogue Abbé Yao & Associés advised NEoT Offgrid Africa on  Ivorian law matters. 

The Orrick team advising SGCI, CACIB, la BAD and Grameen on this transaction was led by Olivier Bernard, along with  Aurélien Parent. Orrick Rambaud Martel advised ZECI with a team including Nicholas George, Amaury de Feydeau, Paul Loisel and Ahmed Boulahcen.

Asafo &Co RCI advised SGCI, CACIB, la BAD on all the aspects concerning the Ivorian law. 

Involved fees earner: Edouard Bourguet – Gide Loyrette Nouel; Marie Bouvet-Guiramand – Gide Loyrette Nouel; Julien David – Gide Loyrette Nouel; Perrine Delandre – Gide Loyrette Nouel; Armelle Royer – Gide Loyrette Nouel; Olivier Bernard – Orrick; Ahmed Boulahcen – Orrick; Amaury de Feydeau – Orrick; Nicholas George – Orrick; Paul Loisel – Orrick; Aurélien Parent – Orrick;

Law Firms: Gide Loyrette Nouel; Orrick;

Clients: African Development Bank; Crédit Agricole Corporate and Investment Bank; NEoT Offgrid Africa; Société Générale; Société Générale des Banques de Côte d’Ivoire; Zola EDF Côte d’Ivoire;

Author: Ambrogio Visconti