India

candi solar AG 2

With a loan of EUR 375,000 candi solar AG will be able to install approximately 750kWp of solar projects at 5 rooftops of companies in India.

  • Direct investment
  • 15 new jobs
  • 650 KwH generated
  • 100 people reached
  • 800 tons of CO2 reduced

€375,000

Amount

48 months

Maturity

6.00%

Annual interest
100%
Fully funded in 36 days on 17 May 2019.
+ 633 other investors

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.

Basic info:

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)

Direct loan

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. 

Documentation

Summary 

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.

The project 

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.

Management team:

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.

 

Case study:

“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

 

Company namecandi solar AG 2
CEOPhilippe Flamand
Founded2018-01-24
LocationZurich
SectorSustainable energy projects
Turnover€671,000
Employees40

Impact of this project

  • With this investment 15 jobs are created
  • With this investment 650 KwH is generated
  • With this investment 100 people are reached
  • With this investment 800 tons of CO2 are reduced

About the investment

TypeDirect investment
Issuercandi solar AG
Funding target€375,000
Annual interest6.00%
Maturity48 months
Repayment periodSemiannually
CurrencyEUR
Terms and conditionsShow
Note termsDownload
Information document issuerDownload

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 info@lendahand.com.

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?

Lendahand works with Intersolve EGI: a Dutch financial institution that specialises in offering services in the field of payment settlement and electronic money. To be able to offer these financial services Intersolve EGI must comply with the applicable financial legislation. Intersolve EGI is therefore supervised by De Nederlandsche Bank (DNB) and the Netherlands Authority for the Financial Markets (AFM) and is in possession of a license to act as an Electronic Money Institution (and therefore also has a license as a Payment Institution). Your money will be deposited on a protected and secure bank account until the project you have invested in has been fully funded. Intersolve in no way has access to these funds. Once the project is fully funded, the money is transferred to the local partner or company in question.

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?

As part of the AFM license for investment firms it is required that operational activities carried out by Lendahand (maintaining the website, contracting of local partners, legal issues, etc.) are strictly separated from financial transactions (payments made through the website). Intersolve takes care of the payments. This collaboration offers you more security, since your money is placed on a protected bank account immediately after you have made your payment.

What happens when a local partner goes bankrupt?

When a local partner goes bankrupt, there will be a chance that you lose (part of) the amount you lend. Obviously Lendahand will try to recover outstanding payments, but the success rate will be limited in such situations. For the investor there is no possibility to take action against the financial institution. From a legal point of view the local partners are separated, therefore it is recommendable to spread loans across different local partners.

About candi solar AG

Total assets€1,073,585
Revenue€674,071
Leverage ratio50.00%
Solvability60.00%
Liquidity390.00%