DWM Expands Climate Finance Lending Practice with ZAR 80.0 million Facility for Pan-African Solar Platform Spark Energy Services

Developing World Markets (DWM), a leading private credit impact investor in emerging markets, is pleased to announce the closing of a USD 5.0m, ZAR-denominated, senior secured credit facility with Spark Energy Services (Spark) to support self-generation solar initiatives in Africa’s commercial and industrial (C&I) sector.

Spark, the innovative financing platform managed by London-headquartered Camco Management Ltd, will use the loan to scale its funding for local renewable energy developers, which can obtain up to 100% financing for distributed renewable energy solutions and energy efficiency equipment for businesses. This aligns with Spark’s strategy to facilitate sustainable energy solutions for African companies, particularly SMEs, to meet their energy needs more reliably, reduce their monthly power bills, increase their competitiveness, and drive decarbonization within the region.

Robert Constantino, DWM’s Head of Private Credit, stated: “This transaction reflects the continuation of our climate finance and renewable energy lending practice, which we first established in 2016. Spark's platform is exactly the kind of diversified, scalable, locally-driven solution we target to broaden access to affordable, reliable power for African SMEs. We look forward to building on this transaction and expanding our lending activity in the C&I solar sector across Africa and beyond.”

Ignacio Inda, DWM’s Head of Climate Finance & Renewables, said: “DWM is pleased to provide Spark with a differentiated funding solution. Thanks to the DWM SDG Credit Fund’s unique local currency lending capabilities we were able to seamlessly mirror the revenue profile of one of Spark’s major C&I projects in South Africa and extend financing in ZAR on an unhedged basis.”

Adam Fitzwilliam, Director of Spark, said: “We are grateful to DWM for the team’s leadership in providing critical local currency financing to Spark. DWM’s funding commitment to Spark’s senior debt facility will help us expand our South African renewable energy business, whilst enabling us to more efficiently manage currency risk across our portfolio.

Developing World Markets (DWM) is a leading emerging markets, impact investing firm. Founded in 1994, the firm serves institutional investors, seeking investible solutions that offer risk-appropriate returns while sustainably addressing the social, environmental, and economic needs of the developing world. Through DWM Asset Management, LLC, the firm’s SEC registered investment adviser, DWM has originated and managed over $3.0 billion of private debt and private equity investments in impact-oriented enterprises in more than 70 emerging and frontier countries.

Spark Energy Services (Spark) is an innovative finance platform created by Camco to support the deployment of captive generation and energy efficiency solutions in Africa’s commercial and industrial sector.

Camco is a climate and impact fund manager. With over 30 years’ experience in sustainable finance and on-the-ground value generation, Camco has supported over 100 projects in 40 countries. The company manages multiple investment platforms aimed at financing innovative solutions to address climate change and deliver positive impact in emerging markets, including the Renewable Energy Performance Platform (REPP), REPP 2 and Spark Energy Services, and is an Accredited Entity of the Green Climate Fund.

Robert Constantino, Partner, Head of Private Credit