REDAVIA GmbH 8
With a loan of EUR 330,000 REDAVIA will pre-finance, procure, import and install another 7 solar units of 84 kWp each for businesses in Ghana and Kenya.
- Direct investment
- 5 new jobs
- 750 people reached
- 7 solar systems installed
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: 330,000 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.
Watch the intro movie here
REDAVIA’s solar plants give commercial and industrial (C&I) companies in Ghana and Kenya access to clean and affordable energy. Freed cash from this repayment funding will flow into solar assets for seven further solar Units that have been committed. With a loan, REDAVIA will pre-finance, procure, import and install up-to 7 solar Units (FTS-80GM at 85 kWp per Unit, FTS-40CP at 50 kWp per Unit, or FTS-60RM at 70 kWp per Unit) into leases with (C&I) customers in Ghana and Kenya. To date, REDAVIA has installed 53 solar Units and operates them in line with Ghanaian and Kenyan regulations under lease-to-own contracts, with an average lease term of 12 years. REDAVIA is proud to continuously extend its portfolio of Leases during the COVID-19 crisis and contribute with low cost and clean power to its customers well-being, conserving cash, maintaining or restarting system-critical operations and retaining local employees such as with Methodist University College in Ghana. This loan will enable the companies to use up to 625 MWhs per year of clean energy, impacting a total of 750 employees and other stakeholders.
All funded Units follow REDAVIA’s standardized specifications of FTS-80GM, FTS-40CP, or FTS-60RM. 40-foot containers are packed with solar panels, prefabricated aluminium or steel 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:
- REDAVIA has produced 4,400 MWhs of clean energy and each ground mount solar Unit adds p.a. 120 MWhs, carport Unit adds p.a. 60 MWhs, and roof mount Unit adds p.a. 95 MWhs.
- In total, this accumulates to 2,300 tons of CO2 abated with each solar Unit reducing another p.a. 55 tonnes of CO2 (FTS-40CP p.a. 27 tonnes, FTS-60RM p.a. 41 tonnes)
- REDAVIA’s customer portfolio in Ghana gives more than 20,000 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 85 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 10 local team members in Ghana and Kenya and trains them on a regular basis 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.
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
Previous realized projects: https://www.redaviasolar.com/
|Company name||REDAVIA GmbH 8|
Impact of this project
- With this investment 5 jobs are created
- With this investment 750 people are reached
- With this investment 7 solar home systems are installed
About the risks
What are the risks of investing money?
The risk level depends on the specific project. Local partners cover the risk of currency exchange rates and defaults on Local Partner investments. They do this by maintaining financial reserves for this purpose. Aside from that, there is an option to claim their equity if needed. While these measures are intended to minimize the risk to investors, our local partners face risks of their own that could affect their ability to secure your investment. These include - bankruptcy - currency exchange rates - fraud - operational risks - political and regulatory changes - natural disasters or epidemics.
With direct investments, risks of default are not covered. As the risks are higher, so are the interest rates.
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 investments 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?
Every local partner must share our social mission to ensure local entrepreneurs can access affordable financing, allowing them to grow their business. Local partners must also have a 'track record'; they must have proven themselves as a reliable credit provider for SMEs.
For instance, this means a solid credit portfolio and enough buffers and equity to compensate for unexpected downturns. We also check the organizational structure of the portfolio company and how robust their (internal) procedures are. Finally, the investments must be in proportion to the total balance of that portfolio company. A healthy balance between effectuating influence and being independent 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 companies request funding. To provide more insights on risks, an independent party comes in to perform an analysis of 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 investing advice.
Does Lendahand provide a guarantee?
Usually 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.
For most direct investments, there is no guarantee. However, currency risks are covered.
Sometimes, and only for some direct investments in Africa, our partner Sida, part of the Swedish government, will guarantee a maximum of 50%. Read here more about guarantees with Sida. Projects with Sida guarantees are indicated explicitly on the project page.
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 concerning private and payment details. All sensitive data is sent through an encrypted connection (https). Also, information is stored (encrypted) in a secured facility provided by AWS: the world’s largest hosting service. A secured connection and multi-factor authentication can only retrieve customer documents.
What happens if the local currency devaluates?
Our local partners and companies bear the exchange rate risks. We settle the investments, 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) went bankrupt, trades between Lendahand and payment service provider Intersolve EGI would cease immediately. Intersolve will then transfer the funds in your 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 entrepreneurs 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 with trusted money and or financial instruments (such as notes or options) to a licensed bank, an 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 €20.000 per individual. For more information, go to www.toezicht.dnb.nl/en/2/50-202210
Why is Intersolve EGI handling my money?
What happens when a local partner goes bankrupt?
About REDAVIA GmbH
|Revenue (per year)||€1,150,000|
|Equity / total assets||21.00%|