CrossBoundary Energy secures financing to scale African renewable energy
Published by Oliver Kleinschmidt,
Assistant Editor
Energy Global,
CrossBoundary Energy has secured a US$140 million senior debt commitment from the Standard Bank of South Africa on a fully underwritten basis. The transaction highlights the potential role of commercial funders in supporting the adoption of renewable energy solutions by businesses across Africa.
The financing is being undertaken as a first tranche within a broader mandate with the Standard Bank of South Africa, which has been appointed to lead and arrange up to US$300 million senior debt to support the scaling of CrossBoundary Energy’s renewable energy portfolio serving Commercial and Industrial (C&I) clients across Africa.
CrossBoundary Energy was supported by Cygnum Capital acting as exclusive financial adviser, and by Bracewell (UK) LLP as borrower’s counsel. Trinity International LLP acted as lenders’ counsel on the transaction.
In Africa, access to reliable and affordable power is one of the largest impediments to business growth. While service providers can solve this, access to finance remains an immense barrier to companies accessing that power. The IEA estimates that the energy transition will require US$160 billion annual investment between 2026 — 2030 to align with climate goals, the bulk of which will come from the private sector.
"There is a growing need for innovative energy solutions in Africa. Companies like CrossBoundary Energy are addressing this block holistically through energy systems that are financed, distributed, and led by renewables. Standard Bank is committed to supporting pioneers like CrossBoundary Energy on their growth trajectory", said Jeanne-Marie Fatti, Senior Vice President: Energy & Infrastructure, Corporate and Investment Banking at the Standard Bank of South Africa.
"Scalable, affordable infrastructure financing solutions are a catalyst to unlock reliable and affordable power access for businesses on the continent. Our partnership with Standard Bank will allow us to expand and accelerate energy-as-a-service to African customers, ultimately improving the sustainability and competitiveness of businesses across Africa", added Pieter Joubert, President and Chief Investment Officer at CrossBoundary Energy.
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Read the article online at: https://www.energyglobal.com/other-renewables/03122024/crossboundary-energy-secures-financing-to-scale-african-renewable-energy/
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