Demystifying Securitization for Solar Pay-As-You-Go Companies

This paper aims to demystify off-balance-sheet (OBS) securitization for pay-as-you-go (PAYGO) companies
working in sub-Saharan Africa (SSA). Its approach is to pose and answer questions that PAYGO companies
would have in mind as they consider embarking on securitization. Investors stand to benefit from this paper
as much as off-grid companies. It outlines the factors that PAYGO companies evaluate as they consider OBS
financing, and informs investors how they can become more involved in OBS securitization. With this paper,
we encourage off-grid companies to see how OBS facilities can help them grow and expand energy access in
Africa. For sharing their experience in OBS financing, we thank Africa Frontier Capital, BBOXX Group, the
Development Finance Corporation (DFC), D.light, NeoT Capital, and PaygOps.