Sunfunder Gigaton Fund Sunfunder Gigaton Fund - Sunfunder Gigaton Fund Subsidy - Asia This contribution provides a guarantee with the aim of mobilizing commercial capital for the Sunfunder Gigaton Fund - an investment fund managed by Sunfunder Inc that intends to provide lending to small and medium-sized enterprises operating in renewable energy in low and middle income countries, with a focus on Africa. Through this lending, the fund strives to contribute to positive development results in five areas. 1) affordable access to clean energy; 2) reduced carbon dioxide emissions; 3) improved well-being and quality of life for women; 4) job creation and positive economic development in low- and middle-income countries, and 5) climate adaptation and resilience.
Sunfunder Inc is an American, Delaware-based company that mobilizes investments to finance small and medium-sized energy companies in low-income economies. Sida already has a guarantee collaboration with Sunfunder Inc.
Through the guarantee, Sida can contribute to reducing the risk in the fund's investments to enable mobilization of commercial capital into the fund, as well as strengthening the fund’s ability to provide lending to renewable energy in countries with low creditworthiness and significant development needs. The guarantee is structured as a loan portfolio guarantee, in which Sida compensates for a certain part of any credit losses related to lending that is eligible under the guarantee agreement. Denna insats avser att bidra med en garanti med syfte att mobilisera kommersiellt kapital för Sunfunder Gigaton Fund - en investeringsfond som förvaltas av Sunfunder Inc och som ämnar att ge utlåning till små- och medelstora företag verksamma inom förnybar energi i låg- och medelinkomstländer, med fokus på Afrika. Fonden eftersträvar att genom utlåningen bidra till positiva utvecklingsresultat på fem områden. 1) ekonomiskt överkomlig åtkomst till ren energi; 2) minskade koldioxidutsläpp; 3) förbättrat välmående och livskvalitet för kvinnor; 4) jobbskapande och positiv ekonomisk utveckling i låg- och medelinkomstländer, samt 5) klimatanpassning och resiliens.
Sunfunder Inc är ett amerikanskt, Delaware-baserat företag som mobiliserar investeringar för att finansiera små- och medelstora energiföretag i låginkomster. Sida har sedan tidigare ett garantisamarbete med Sunfunder Inc.
Genom garantin kan Sida bidra till att minska risken i fondens investeringar så att kapitalresning möjliggörs, samt att ge fonden stärkta möjligheter att finansiera utlåning till förnybar energi i länder med låg kreditvärdighet och betydande utvecklingsbehov. Garantin är strukturerad som en ordinarie portföljgaranti, i vilket Sida kompenserar för en viss del av eventuella kreditförluster relaterade till utlåning berättigad under garantin. The high-level objective of the contribution is to through risk-sharing contribute to mobilising up to $400m of financing for distributed renewable energy services improve quality of life, productivity, income, climate resilience and climate mitigation through increased access to financially, socially and environmentally sustainable modern renewable energy solutions in SSA and APAC. 

At the end of the contribution, Sida expects the following results:

- first time or improved energy access for 2.3m people (10m people targeted by Sunfunder over the fully capitalized fund life). Of the 2.3m people, 0.5m are APAC and 1.8m SSA.

- 3.8m tonnes avoided CO2 emissions (17m tonnes over full fund). Of the 3.8m, approximately 2.8m is SSA and 1m APAC.

- support 0.5m jobs through productive use solutions and increased SME productivity from cost-savings and reliability (2.5m jobs over full fund) Of the 0.5m jobs, 0.1m are APAC and 0.4m SSA.

- reported cost savings from decreased diesel use.

- reported increased agricultural yields from beneficiaries of agri-solar solutions and resilience through productive-use of energy solutions in Agri-solar.

- order-of magnitude disability-adjusted life years improvement derived from clean cooking financing and avoided particulate-, NOx and Sox emissions from decreased use of diesel gensets.

- increased access to telecoms and digitization, also in rural areas through solar solutions for telecoms providers.

- increased proportion of women- owned or managed business receiving financing, employment and mainstreaming of Gender and ESG practices both in investment process and with investees. Measured as proportion 2x-aligned investments.

- catalytic investments made in respectively underserved or frontier segments such as Energy efficiency, e-mobility, energy storage or smart grids.

- significant investment in underserved LDC countries or underserved, poorer demographics in LMIC and UMIC countries.

- learnings on beneficiaries needs, companies, markets to inform future contributions.