SolarWorks! and its lead investors EDP and Persistent have successfully completed a recapitalization. The leading off-grid renewable energy businesses in Southern Africa, SolarWorks! is now positioned for faster growth as a broad energy service company in Southern Africa.
The recapitalization of SolarWorks! consisted of an additional $5.3 million of equity investment from the company’s existing shareholders, primarily EDP and Persistent. The Energy Access Relief Fund, managed by SIMA Funds, participated in the recapitalization with loans totaling $2.0 million. This recapitalization process also included the conversion to equity, write-off and extension of maturity of a total of $8.5 million of company debt.
With operations in Mozambique and Malawi, SolarWorks! sells solar systems on a PayGo basis to residential and business customers. This includes larger 1-30kWp systems in Mozambique and Malawi, in offices, tourist accommodations and public buildings like clinics and schools.
Arnoud de Vroomen, CEO of SolarWorks! said: “This recapitalization places SolarWorks! in a great position to continue the growth that started in 2022 after the external factors of cyclone and pandemic were behind us. SolarWorks! has a strong balance sheet now with a very solid operation that balances renewable energy PayGo and cash businesses. We are very grateful to our shareholders and lenders to make this possible as it will result in thousands of businesses and families gaining access to energy in the coming years.”
“Through challenging times, SolarWorks! was able to deliver a strong track record of growth and positive impact in the communities where it operates”, emphasized Martim Salgado of EDP, SolarWorks!’s largest investor. “The conclusion of the debt restructuring reflects the confidence that EDP and other stakeholders have in SolarWorks!´s future. We are fully aligned with SolarWorks! commitment to promote access to energy and transforming lives.”
Chris Aidun of Persistent, which also acted as restructuring advisor to SolarWorks!, said: “SolarWorks! is a great company that has suffered setbacks out of its control since 2019. The recapitalization was a necessary solution to restore its health and preserve maximum value for all investors and the communities it serves. All stakeholders recognized this, which is what made the recapitalization possible. The company is now in a position where it can grow and expand its footprint across Southern Africa.”
SolarWorks! has been active in offering access to energy products and services in Southern Africa since 2008. They are one of the leading players in the access to energy sector in this region with operations in Mozambique and Malawi where they have a nationwide energy service footprint through which more than 100,000 families and businesses are being served.
With over 40 years, EDP is a global company and a world leader in renewables, engaged in energy production, transport, distribution, and trading, operating in 29 markets. EDP has more than 13,000 employees from 63 nationalities, and over 12 million customers.
EDP is at the forefront of renewable energies and innovation implementing solutions and practices that help protect the environment and contribute to a more sustainable future. Recently, the company committed to even more ambitious clean energy targets, aligned with the goals of being all green by 2030 and net zero by 2040 at the same time, EDP also seeks to break cycles of social exclusion and contribute to a society that is more effective and efficient in building its own sustainability.