Standard Bank Invests $20 million to support Africa’s renewable energy transition

CrossBoundary Energy (CBE) is a leading, pan-African distributed renewable utility, with a focus on supplying electricity to a diverse portfolio of commercial and industrial consumers. The company provides tailored, fully financed renewable energy solutions to its corporate customers, which allows them to avoid upfront capital expenditure and technical risks. Through CBE’s solutions, customers are able to enjoy access to cheaper, cleaner and more reliable power.

The company has an African team with the necessary experience and resources required to carry out end to end project sourcing, development, diligence, construction management and asset management. CBE collaborates with its partners to provide renewable energy solutions that adapt to the specific needs of each customer, including designing, building, financing, installing and maintaining renewable energy installations.

The debt facility has been agreed between CBE and the Facility for Energy Inclusion (FEI), a debt financing facility for small-scale energy access projects, off-grid solar, small Independent Power Producers (IPPs), captive installations and mini-grids. FEI is sponsored by The African Development Bank and managed by Cygnum Capital (formally known as Lion’s Head Global Partners), a leading investment banking and asset management firm, specialising in tailored and innovative financial solutions across frontier and emerging markets. Cygnum Capital has offices in London, Nairobi, Lagos, Dubai and Amsterdam, and offers deep sectoral knowledge with a broad product offering across corporate finance, asset management and financial advisory activities.  

FEI, managed by Cygnum Capital acted in its capacity as lead arranger for the debt facility, while Standard Bank has come into the facility on a primary sell down basis and is providing $20 million alongside FEI’s $30 million participation. This transaction has been instrumental in supporting CBE’s efforts to scale its commercial and industrial renewable energy portfolio across Africa. CBE is continuing ongoing discussions with senior lenders, in the expectation of closing a material senior debt facility early in 2024.

Standard Bank has built a relationship with CBE over a period of a year and the banks participation in the bridge facility shows our commitment to providing funding to CBE for their continuing construction rollout. As Africa’s largest bank, Standard Bank remains committed to partnering with various stakeholders to address the continents energy crisis and provide cleaner, more reliable energy for African citizens. The bank has continued to support the quest for renewable energy and has, to date, allocated approximately R5.5 billion across varied debt initiatives.

Standard Bank is proud to partner with CBE to assist the company achieve its goals.  CBE’s business model is aligned with one of the bank’s strategic goals of funding decentralised energy opportunities across Africa. As we continue to foster collaborations with enterprises that champion renewable energy, propelling Africa's journey towards a sustainable energy landscape, we are honoured to be associated with CBE and the renewable energy and electrification benefits that the company brings across the continent.