IRENA & Abu Dhabi Fund for Development (ADFD) awards Ignite with a $15m financing facility
Ignite Power is one of two projects that has been awarded a long-term financing facility from the Abu Dhabi Fund for Development (ADFD) in the 8th session of the International Renewable Energy Agency IRENA/ADFD Assembly, following an extremely competitive and rigorous selection process.
The financing facility which provides a project financing loan with a 1-2% interest rate for 15 years is the only one ever awarded in the Solar Home sector. The robust project finance structure of Ignite’s projects enables ground breaking long-term securitisation of Ignite’s expansion of its Solar Home systems asset financing and distribution. The facility’s favourable terms will allow Ignite to provide even more affordable financing to its clients and local partners thus expanding the addressable market for the provision of rural electrification in areas which were excluded from energy access before.
Adnan Z. Amin, Director General of IRENA wrote: “The project was recommended by IRENA to ADFD from up to 89 applications and scored highly on technical merit by an international Panel of Experts. The project selected is Replicable, Scalable and potentially Transformative”
ADFD committed $350 million in concessional loans, over seven annual funding cycles, to renewable energy projects recommended by IRENA to support replicable, scalable renewable energy projects in developing countries. Up to today only 21 projects were chosen to receive the facility and in this recent 5th cycle only two projects were finally awarded it.
About the International Renewable Energy Agency (IRENA)
IRENA is mandated to be the global hub for renewable energy cooperation and information exchange by 154 Members (153 States and the European Union). 27 additional countries are in the accession process and actively engaged. IRENA promotes the widespread adoption and sustainable use of all forms of renewable energy, in the pursuit of sustainable development, energy access, energy security and low-carbon economic growth and prosperity.
About Abu Dhabi Fund for Development (ADFD)
Abu Dhabi Fund for Development is a national organisation owned by the Abu Dhabi government. Established in 1971, its purpose is to help emerging countries by providing concessionary loans to finance sustainable development projects alongside other long-term investments and direct contributions. In addition, the Fund manages government grants offered by the Abu Dhabi government and monitors the course of the relevant projects. To date, it has invested around AED80 billion in development projects across 84 countries.