REDAVIA GmbH 4
With a EUR 200,000 loan REDAVIA will pre-finance, procure, import and install 4 solar units into leases with companies in Ghana and Kenya impacting the lives of 400 people.
- Direct investment
- 10 new jobs
- 400 people reached
- In the coming period there are different conditions for this partner. More information can be found here.
- The interest rate has been temporarily increased by one (1) percentage point to accommodate the growing uncertainty associated with COVID-19.
- In addition, this investee is allowed - provided they continue to comply with the applicable covenants - to refinance future repayments to Lendahand investors with the funds raised from this project.
- Repayments occur after 12 months, 18 months and 24 months.
- Issuer: REDAVIA GmbH
- Currency: EUR
- Amount: 200,000
- Maturity: 24 months, repayments after 12, 18 and 24 months
- Interest rate: 6,5% p.a.
This is a direct loan to a company 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.
REDAVIA’s solar plants give commercial and industrial (C&I) companies in Ghana and Kenya access to clean and affordable energy. With a €200,000 loan, REDAVIA will pre-finance, procure, import and install 4 solar Units (FTS-80GM each unit 84 kWp or FTS-40CP each unit 40 kWp) into leases with (C&I) customers in Ghana and Kenya. To date, REDAVIA has installed 39 solar Units and operates them in line with Ghanaian regulations under lease-to-own contracts, with an average lease term of 12 years. Freed cash from this repayment funding will flow into solar assets for twenty-two further solar Units that have been committed. REDAVIA recently imported 9 Units into Ghana and 2 Units into Kenya, while 6 further Units are due to be shipped in the upcoming weeks Commissioning with SMEs in the servicing and agrofood sectors has started, such as Kasapreko Company Lt. in Ghana and Exotic EPZ Ltd. in Kenya. This loan will enable the companies to use up to 600 MWhs per year of clean energy, impacting a total of 400 employees and other stakeholders.
All funded Units follow REDAVIA’s standardized specifications of the FTS-80GM or FTS-40CP. 40-foot containers are 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 and Kenya. Further cabling, concrete blocks and other local material is purchased locally and expedited to the customer site. Once the materials have 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.
In Ghana to-date (March 2020):
- REDAVIA has produced 3,337 MWhs of clean energy and each ground-mount solar Unit adds p.a. 120 MWhs and carport solar unit p.a. 60 MWhs
- In total, this accumulates to 1,404 tons of CO2 abated with each solar Unit reducing another p.a. 55 tons of CO2 (FTS-40CP p.a. 27 tons)
- REDAVIA’s customer portfolio in Ghana gives more than 19,150 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 11 local team members in Ghana and Kenya and trains them on a regular basis along with more than 20 contractors and suppliers.
Additional information on COMPANY:
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.
Highlights or Awards:
Frost & Sullivan’s Best Practices Award 2014
|Company name||REDAVIA GmbH 4|
|Sector||Sustainable energy projects|
Impact of this project
- With this investment 10 jobs are created
- With this investment 400 people are reached
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)||€1,150,000|
|Equity / total assets||21.00%|