Loan

OMDF provides loans to different market participants who need working capital finance or refinancing of consumer credit.

Formulaires

About the OMDF loans

Is it for you?

Loans for entities who need working capital finance or require a refinancing of consumer credit.

OMDF’s loan facility at a glance

OMDF’s loan facility supports the on-going growth of off-grid solar distributors by focusing particularly on the working capital requirements for the commercialization of inventory and for refinancing consumer loans to end customers.

All eligible participants in the value chain for the distribution of certified solar products.

Who qualifies for the loan ?

OMDF will invest along the value chains for the distribution of qualified solar products (Lighting Global / VeraSol certified products),including :

  • Solar distributors (with or without PAYGO model)
  • Traditional resellers
  • Wholesale distributors
  • Microfinance and other financial institutions

OMDF invests in companies at an early and mature stage.

Short- or medium-term loans for purchases, for inventory financing, for refinancing ...

Investment instrument and types of loan ?

OMDF will offer a range of loans to different types of companies, as summarized in the table below :

Target companies Type of Credit Line offered
1 – Solar distributors (with or without PAYGO model) Short- or medium-term loans for working capital
2 – Traditional resellers Loans for inventory financing
3 – Wholesale distributors Loans for acquisition
4 – Microfinance and other financial institutions Refinancing of solar loans  to end consumers and distributors

Legally constituted and profitable Companies supplying LG products with a viable business plan.

Eligibility criteria

All companies wishing to receive a loan from OMDF must meet the following conditions :

  • In compliance with local procedures and regulations (tax, legal and accounting)
  • Planning to supply Qualified products which are certified by Lighting Global / VeraSol.
  • Warranty and after-sales service : Warranty in accordance with Lighting Global / VeraSol’s obligations for pico-PV products and solar home systems.
  • Business Plan and Profitability: At least one year’s projected balance sheet and income statement showing a well-managed cost structure and a clear route to break-even and profitability.
  • Recycling: Companies with a recycling policy and plan for end-of-life system components, especially batteries.

A defined financing strategy, an acceptable risk profile…

Additional criteria for companies offering credit financing for Off-Grid Solar Products.

In addition to the general eligibility criteria, companies offering loans for off-grid solar products must meet the following conditions:

  • A track record of financing operations in rural area or off-grid solar products
  • A defined financing strategy
  • An acceptable risk profile: risks regarding liquidity, credit, foreign exchange, interest rate and market, as well as risks associated with the structure of the balance sheet and income statement.
  • Recoveries and portfolio management.

Working capital financing and receivables financing with flexible conditions.

Terms and conditions of the loan

OMDF will generally provide distributors of solar products with working capital financing associated with the funding of inventory (“inventory financing“) and consumer loans to end customers (“receivables financing“). Different types of financing may be combined into a single loan to the same company.

The size of the loan, the duration and the repayment plan will be defined with the company. The repayment plan will be defined in relation to the cash flows of the business, in particular the collection of cash from end customers.

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If you are interested in the different types of funding offered, please contact us.

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