With a loan of EUR 500,000 REDAVIA will pre-finance, procure, import and install 10 solar units of 84 kWp each for 10 commercial customers in Ghana.
- Direct investment
- 15000 people reached
- 10 solar systems installed
- 550 tons of CO2 reduced
IMPORTANT NOTE: high risk product - direct loan to renewable energy product distribution company. No local financial institution in between to cover risks.
Issuer: REDAVIA GmbH
Amount: EUR 500,000 senior debt
Maturity: 18 months, semi-annually and linearly amortizing
Interest rate: 5.5% p.a.
This is a direct investment in a company (rather than lending to a financial institution) and therefore it is recommendable that you are careful with the amount you will invest.
REDAVIA is an industry leader in solar power. We provide solar farms to businesses and communities in West and East Africa. With a proven track record in cost-effective, reliable and clean energy, REDAVIA is committed to using solar energy as a key driver for sustainable development.
The innovative REDAVIA pay-as-you-go system consists of a pre-configured Unit containing solar modules and electrical components. Once the Unit is on-site, our REDAVIA-trained, local specialists manage the installation, operations and maintenance of each solar farm.
Our carbon neutral solution can be used to support existing power structures by supplementing the utility grid or on-site diesel generators. Through our flexible lease agreements with just a minimal upfront investment, our customers can reduce costs and increase their operational flexibility.
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REDAVIA’s solar plants give commercial and industrial (C&I) companies in Ghana access to clean and affordable energy. With a €500,000 loan, REDAVIA will pre-finance, procure, import and install 10 solar Units of 84 kWp each into leases with (C&I) customers in Ghana. To date, REDAVIA has installed 21 solar Units and operates them in line with Ghanaian regulations under lease-to-own contracts, with an average lease term of 12 years. Twenty-five further solar Units have been contracted, and REDAVIA has already ordered 14 Units to supply the open contracts. Regional Maritime University, Movelle Company (agrofoods business, specifically fish trading) and Special Ice Company Ltd (soft drink factory) are among the customers who will receive these Units. This loan will enable the companies to use up to 1200 MWhs per year of clean energy, impacting a total of 15 000 employees and other stakeholders. We are especially proud of extending the reach of our clean energy further into Regional Maritime University housing and being able to use our solar Units as a training ground for students in their engineering classes.
The 10 solar Units to-be-funded follow REDAVIA’s standardized specifications of the FTS-80GM. Five 40-foot containers will be packed with solar panels, prefabricated aluminium frame structures, inverter systems and cabling to connect the panels to strings and to the inverters; the containers will then be shipped to Ghana. Further cabling, concrete blocks and other local material is purchased in Ghana and expedited to the customer site. Once the material has arrived, the container is unpacked, and a solar plant is installed within 2 days.
REDAVIA expects to deploy around 5 MWp of solar capacity per year to leases in Ghana for the next three years.
In Ghana to-date:
- REDAVIA has produced 1500 MWhs of clean energy and each solar Unit adds p.a. 120 MWhs
- In total, this accumulates to 650 tons of CO2 abated with each solar Unit reducing another p.a. 55 tons of CO2
- REDAVIA’s customer portfolio in Ghana gives more than 17 000 workers and residents access to clean energy.
- REDAVIA’s customers not only own the solar equipment after the lease contract is complete, but also achieve > 5% of monthly savings on the energy delivered, i.e. an average of a hundred US Dollars per month per solar Unit of 84 kWp. Customers can reinvest these savings into their businesses for further growth.
- REDAVIA works with the Regional Maritime University to support RMU’s newly accredited ‘Renewable Energy Engineering’ curriculum, which aims to educate and prepare students for engineering jobs in the renewable sector, ensuring ongoing, sustainable development in Ghana, as well as contributing to the creation of jobs and wealth within the country.
- REDAVIA hired 5 local team members and trained them along with more than 20 contractors and suppliers.
Description of Vision & Mission:
Our vision is to be the global market leader of cost-effective, reliable lease-to-own solar power solutions for businesses and communities, reducing emissions by over 100k tonnes/year and providing clean electricity access to around 650k people by the end of 2021.
Our mission is to provide cost-effective, reliable and clean solar energy, enabling businesses and communities to grow sustainably.
Erwin Spolders, Chief Executive Officer:
Erwin Spolders is the CEO and founder of REDAVIA. Erwin has over 12 years of experience in solar farm construction and sustainability measures. Prior to founding REDAVIA, Erwin was a director of Q-Cells’ solar farm construction business for the EMEA region. Before, he led McKinsey & Company’s activities surrounding the business impact of climate change. Erwin earned his bachelor’s degree in Business and International Relations from the University of Virginia and his MBA in Finance, Marketing and Entrepreneurship from the Wharton School, University of Pennsylvania in the U.S.
Oliver Keilhack, Chief Financial Officer:
Oliver Keilhack is the CFO of REDAVIA and has over 20 years of experience in entrepreneurial finance. He has had CFO positions in a series of venture capital driven biotech and high-tech organizations, including German clean-tech venture Micropelt and oncology diagnostics venture AdnaGen. Previously, Oliver was a board member at Trade2B and involved in the SynerTrade Group, after spending a number of years in international, executive roles at Mannesmann. Oliver earned a master’s degree in Business and Administration from WHU – Otto Beisheim School of Management in Germany.
Alexander Harpe, Chief Sales Officer:
Dr. Alexander Harpe is the CSO of REDAVIA and has over 20 years of experience in sales and corporate business development. Alexander’s long-standing, international career has included senior executive roles at Forrester, Fujitsu, IMS, Accenture, and IBM Global Business Services. He earned his bachelor’s degree in Political Science and Information Technology from the Ludwig-Maximilian University of Munich, Germany, his PhD in Electrical and Optoelectronic Engineering from the University of Oxford, England and his MBA in International Finance, Marketing and Strategic Management from the Wharton School, University of Pennsylvania in the U.S.
Highlights or Awards:
- Frost & Sullivan’s Best Practices Award 2014
Previous realized projects: https://www.redaviasolar.com/
|Company name||REDAVIA GmbH|
Impact of this project
- With this investment 15000 people are reached
- With this investment 10 solar home systems are installed
- With this investment 550 tons of CO2 are reduced
About the risks
What are the risks of investing money?
Our local partners cover the risk of currency exchange rates and loan defaults. They do this by maintaining financial reserves for this purpose . In addition, there is an option to claim their equity if needed. While these measures are intended to minimize the risk to funders, our local partners face risks of their own that could effect their ability to secure a loan. These include: - bankruptcy - currency exchange rates - fraud - operational risks - political and regulatory changes - natural disasters or epidemics.
If you invest direct in a company, hence not via a local partner, risks of default are not covered. As the risk that comes with direct lendings is generally higher than an investment through a local partner, the interest rate is also higher.
There is also some operational risk at Lendahand. An example might be that Lendahand is unable to find shareholders to finance their activities. In such a case, Lendahand will handle outstanding loans at the best of its ability. At the same time, our ability to legally address non-payment from local partners becomes understandably difficult.
How does Lendahand minimize the risks?
Local partners must adhere to our mission and work with us to provide loans that are affordable. This insures that local entrepreneurs have access to financing that allows them to grow their business. A local partner must also have a track record. In other words, they must have proven themselves as a meso-credit provider for SMEs. This means (for instance) that the partner must have a solid credit portfolio, along with enough buffers and equity to compensate for unexpected downturns. We also check the organizational structure of the partner and how robust their (internal) procedures are. Finally, the loans that a local partner receives via Lendahand must be in proportion to the partner's total balance sheet. A healthy balance between effectuating influence and independence is crucial. If you would like to receive more information on the financial indicators we employ, please contact us via firstname.lastname@example.org.
When currency exchange risks become too high for a local partner, Lendahand will urge the local partner to cover these risks. In some scenario's the local partner is contractually obliged to comply with these demands.
Lendahand will always conduct due diligence when a Company requests for a direct loan. To provide more insights on risks, an independent partie comes in to perform brief analysis on direct loans. The results can be downloaded on the project detail page of the direct loan. However, this analysis serves primarily as a tool for your own opinion and conclusion. Pay attention to the fact this analysis is not an investing advice.
Does Lendahand provide guarantee on the loans?
Normally we don't. Local partners take care of the repayment, even if (some) entrepreneurs are unable to do so themselves. If the local partner is for some reason unable to repay then there is a chance of partial or full loss of your money. For this reason Lendahand only selects financially solid partners based on strict criteria.
Also, for most direct loans no guarantee is provided. For these investments currency risks are covered however.
Sometimes - and only for some direct investments in Africa - our partner Sida, part of the Swedish government, will provide a guarantee with a maximum of 50%. If this is the case, it will be indicated explicitly.
Does Lendahand have a license or exemption?
Yes. The Dutch Authority Financial Markets (AFM) has provided Hands-on B.V. (with trade name 'Lendahand') in September 2016 with an investment firm license in accordance with article 2:96 of the Financial Markets Supervision Act (Wft). Placing orders on Lendahand's website is therefore an AFM regulated activity. Lendahand also meets its minimum capital requirements of EUR 125,000 following its license as required by De Nederlandsche Bank (DNB).
Lendahand uses an exemption from an approved prospectus that is available up to EUR 5 Million per year.
How safe are my personal details?
We adhere to strict safety requirements with regards to private and payment details. All sensitive data is sent through an encrypted connection (https). Also, data is stored (encrypted) in a secured facility provided by AWS: the world largest hosting service. Customer documents can only be retrieved by a secured connection and multi-factor authentication.
What happens if the local currency devaluates?
Our local partners and Companies bear the exchange rate risks. We settle the loan, redemptions, and interest payments in euro.
Does Lendahand use a third foundation fund?
What happens with my money if Lendahand goes bankrupt?
If Hands-On BV (containing the brand name Lendahand) would go bankrupt trades between Lendahand and payment service provider Intersolve EGI would cease immediately. Intersolve will then transfer the funds in your personal wallet to your bank account (Note: if at this time the project you have invested in has been fully funded and the money has thus been transferred to the local partner, these funds will not be transferred back to your bank account). Intersolve will then in consultation with a trustee handle all repayments between the investors and investees up until the final repayment of the last project has taken place.
Additionally, Lendahand is part of the investor compensation scheme (ICS). This scheme aims to compensate individuals and small businesses who have trusted money and or financial instruments (such as notes or options) to a licensed bank, investment firm or a financial institution in case the financial firm is unable to meet its obligations arising from claims related to the investment service (in other words, if Hands-On BV is not keeping track of the acquired notes by investors in the Wge depot correctly). The ICS guarantees an amount of up to EUR 20,000 per individual. For more information, go to www.toezicht.dnb.nl/en/2/50-202210
Why is my money going via Intersolve EGI?
What happens when a local partner goes bankrupt?
About REDAVIA GmbH
|Revenue (per year)||€844,271|
|Equity / total assets||21.00%|