Key Takeaways
- CrossBoundary Energy has secured US$140M senior debt from the Standard Bank of South Africa as the first tranche in a broader mandate with Standard Bank
- Scalable infrastructure financing addresses a crucial barrier for the African market to access affordable and reliable power through supporting CrossBoundary’s energy-as-a-service offering
- The transaction is a leading example of commercial funders driving renewable energy adoption and the energy transition
Johannesburg – 02 December 2024 – CrossBoundary Energy has secured a US$140M senior debt commitment from the Standard Bank of South Africa on a fully underwritten basis. The groundbreaking 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$300M 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$160B annual investment between 2026—2030 to align with climate goals, the bulk of which will come from the private sector.
Jeanne-Marie Fatti, Senior Vice President: Energy &Infrastructure, Corporate and Investment Banking at the Standard Bank of South Africa, remarked, “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”.
Pieter Joubert, President and Chief Investment Officer at CrossBoundary Energy, added, “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”.
CrossBoundary Energy provides financed renewable-led power solutions to African enterprises. Its current awarded portfolio comprises $570M of projects across 18 African countries, with 330 MW of solar and wind assets and 178 MWh of battery energy storage solutions. CrossBoundary Energy’s clients include leading businesses in the mining, industrial, and telecommunications sectors such as Rio Tinto, Unilever, Diageo, Heineken, the Devki Group, and IHS Africa. The portfolio features large-scale renewable-led hybrid power plants for mines, rooftop and ground-mount solar PV plants for industrial clients, and distributed solar PV and battery power solutions for telecommunications sites. CrossBoundary Energy is headquartered in Mauritius, with offices in Kenya, Nigeria, South Africa, and Ghana.
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