REDAVIA GmbH 2

IMPORTANT NOTE: high risk product - direct loan to renewable energy product distribution company. No local financial institution in between to cover risks.

Basic info:

Issuer:                                       REDAVIA GmbH
Currency:                                 EURO
Amount:                                   500,000 senior debt
Maturity:                                  18 months, semi-annually and linearly amortizing  
Interest rate:                            5.5% p.a.
 

Direct investment

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. 

Documentation

·         Information document of the issuer

Summary

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.

Watch the intro movie here

The project

REDAVIA’s solar plants give commercial and industrial (C&I) companies in Ghana and Kenya 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 and Kenya. To date, REDAVIA has installed 35 solar Units and operates them in line with Ghanaian regulations under lease-to-own contracts, with an average lease term of 12 years. Fifteen further solar Units have been contracted, and REDAVIA has already ordered 10 Units to supply the open contracts. SMEs in the manufacturing and agrofood sectors will receive these units, such as Special Ice Company Ltd (soft drink factory) and DPS Pipes and Plastics Ltd. both in Ghana. This loan will enable the companies to use up to 1200 MWhs per year of clean energy, impacting a total of 1000 employees and other stakeholders. We are especially proud of having repeat orders, e.g. with DPS Pipes and Plastics, who extended their 4 Unit REDAVIA solar farm funded with Lendahand in July 2019 to 7 Units in order to increase their share of clean energy consumption. The crowd is making an impact!

The 10 solar Units to-be-funded follow REDAVIA’s standardized specifications of the FTS-80GM or FTS-40CP. Five to six 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 the countries. Further cabling, concrete blocks and other local material is purchased locally 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 and Kenya for the next three years.

Impact

In Ghana to-date:

• REDAVIA has produced 1830 MWhs of clean energy and each solar Unit adds p.a. 120 MWhs
• In total, this accumulates to 750 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 6 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.

Management team:

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/