About the issuer
IMPORTANT NOTE: high risk product - direct loan to a renewable energy product distribution company. No local financial institution in between to cover risks.
Issuer: candi solar AG
Amount: EUR 375,000 senior debt
Maturity: 48 months, semi-annually and linearly amortizing
Interest rate: 6% p.a.
Turnover: EUR 671,000 (2019)
This is a direct loan to a company (rather than lending to a financial institution) and therefore it is recommendable that you are careful with the amount you will invest.
candi solar AG offers a fully financed rooftop solar solutions to underserved SMEs in Asia & Africa, allowing clients to immediately cut their electricity costs, reduce their reliance on grid and diesel power, and eventually own the system themselves. candi’s clients range from schools and offices, to newspaper publishers and small industrial manufacturers. By developing a distinctive set of tools – including the use of simplified contracts, innovative IT and hardware solutions and a streamlined credit check – candi is able to scale solar into a sector which up until now has been largely overlooked.
With a EUR 375,000 raise, candi will install around 750 kWp of projects across 5 SMEs in India. These SMEs range from small-scale manufacturers and family run businesses, to schools and office buildings. They form the backbone of Indian society, representing a large majority of employers, firms and economic output, making them critical to socioeconomic development. This loan will empower the SMEs through a fully financed rooftop solar solution, cutting their operating costs and allow them to inject the savings back into their operations to finance additional employment, schoolbooks, playgrounds, IT equipment, refurbishments, and more.
These funds will be used to:
- Deploy up to 750 kWp of new projects across the rooftops of 5 SMEs in India
- Lead to employment for up to 14 people
candi gives a return to its investors through the SME clients paying us monthly for the power they consume. Once the contract is up, the client owns it, at which point the solar will produce free, reliable solar power for the SME for the remainder of the asset’s life, typically another 10-15 years.
We sell into these SMEs via a number of sales agents across India, who work on commission and are already embedded through their network across a range of SME sectors. The systems we deploy are typically on metal sheds and RCC (concrete) rooftops, and vary between 50-250 kWp in size. This will usually displace between 20-40% of the client’s electricity consumption, saving them money in the process, and mitigating their consumption from the predominantly coal-fired power grid.
What sets candi apart from regular C&I rooftop solar players is our use of a distinctive set of tools specifically designed to target SMEs in emerging markets, as these counterparties are typically unrated, with limited resources and short investment horizons. We have thus developed an innovative IT management ecosystem, roof mounts ‘designed for default’, shortened contracts, and a simplified credit check, allowing us to minimise costs and maximise quality.
Since commencing operations last year, we have contracted or commissioned more than 2.5 MW of rooftop solar for more than 15 happy clients, ranging from schools and industrial units, to auto parts manufacturers and a local newspaper publisher. We aim to install 100 MW of rooftop solar in the next five years across the small-scale SME sector, including geographical expansion to Africa and other parts of Asia.
Additional information on candi Solar:
Description of Vision & Mission:
To empower SMEs with cheap, reliable solar power across India & Africa resulting in twin benefits of carbon mitigation and local economic development.
Philippe Flamand- CEO, Global
10+ years of experience in finance & renewables, from Asia to Europe to Africa. Worked with Morgan Stanley and Goldman Sachs in London and Hong Kong prior to focusing on renewables with SUSI Partners and responsAbility out of Zurich, managing various equity and debt funds investing into the sector globally.
MSc Sust. Dev., London School of Economics; BBusSc (Econ.) University of Cape Town; CFA.
Rahul Gill- CEO, India
Experienced developer and financier with 15+ years experience over 1.2GW. After Goldman Sachs in New York went on to work with NRG, 8minuteenergy and others, with a focus on project finance, development and due diligence. Then launched a solar development company in India, which has completed a number of rooftop assets.
BSc Electrical Eng., Mangalore University; MPA, University of Pennsylvania; MBA, University of Illinois.
Amit Ray- CFO, India
20+ years global experience leading several projects across multiple industry verticals; finance & accounting, operating & capital budgeting, infrastructure financing, capital raising and auditing. Has advised key financial initiatives linked to the City of New York, the Ford Motor Company, Standard Chartered Bank & PWC among others.
BSc Mathematics, University of Delhi; Chartered Accountant.
Chris Brosz- CTO, Global
Engineer and consultant for 10+ years, most recently with Arup, South Africa. Has supported over 100 renewable energy projects across the world, spanning the project cycle from concept and design through to procurement, construction and operation. Has also carried out due diligence on over 3 GW of assets for clients including Abengoa, e.on, Equis.
BSc Mechanical Engineering, University of Colorado.
Previous realized projects: 2557 kWp portfolio across India and 17 SME client sites; predominantly in the states of Chandigarh, Haryana, Maharashtra and Punjab.
“Candi really helped to power our business with reliable solar power while helping us save money in the process.
They use top-of-the-line equipment and technology, the contract is much shorter compared to the market standard, and they were highly professional and commendable as partners throughout the process.
Now we're considering extending our partnership with them at Novus Towers to do solar parking and much more."
- Vivek Bansal, MD of Novus Towers, a commercial building on outskirts of Delhi