OPIC commits $6 million in financing to CrossBoundary Energy’s Commercial and Industrial Solar portfolio

 

Nairobi, Washington DC

The Overseas Private Investment Corporation (OPIC), the U.S. Government’s development finance institution, has committed $6 million in debt financing to CrossBoundary Energy, Sub Saharan Africa’s first investment fund for commercial and industrial solar.

 

CrossBoundary Energy provides solar power to African enterprises. Clients sign long term power purchase agreements to purchase solar electricity without contributing upfront investment or taking technical risk on construction and maintenance. CrossBoundary Energy finances, builds, owns and operates the captive solar system for the client. The client receives cheaper and cleaner electricity.

 

OPIC’s commitment will contribute to the funding of six captive solar PV projects currently under construction or development by CrossBoundary Energy. The projects total over 5.75 megawatts of capacity, and are located in Kenya, Rwanda, and Ghana. The clients are leading multinational and local companies.

 

“CrossBoundary Energy has been the pioneer in providing solar energy directly to commercial and industrial businesses in Africa, said OPIC President and CEO, Ray W. Washburne. “We’re pleased to be supporting them to expand the provision of cleaner and cheaper power that helps African enterprises grow and bolsters the mission of Power Africa.”

 

CrossBoundary Energy was established in 2015 as the first investment platform dedicated to the financing of captive commercial and industrial (C&I) solar PV projects in Africa. CrossBoundary Energy now has over 28.8 MWp of C&I projects under operation, construction or awarded – the largest portfolio of such assets in Sub-Saharan Africa.

 

“A lack of reliable and affordable power is holding back private sector-led development in manufacturing and other large industries in Africa,” says CrossBoundary Group co-Managing Partner, Matthew Tilleard.  “This commitment from OPIC provides us with additional, affordable financing that in turn allows companies across Sub-Saharan Africa to benefit from affordable solar that delivers energy savings, business growth and a lower carbon footprint.”

 

Jake Cusack, co-Managing Partner of the CrossBoundary Group, added that “by offering Power Purchase Agreements, CrossBoundary Energy takes complete responsibility for project financing, delivery, and management of technical risk of the solar project. During the contract term, we can also provide storage, energy efficiency, and electricity generation upgrades for our clients, ensuring businesses maintain fully-optimized energy systems to fuel their long-term growth.” He noted that “OPIC’s commitment will assist with financing an important part of CrossBoundary Energy’s current portfolio as it continues to build out its commercial pipeline across Sub-Saharan Africa.”

 

OPIC has been a longstanding partner of CrossBoundary Energy, having provided a grant in 2014 through the U.S. Africa Clean Energy Finance Initiative (ACEF) to support the establishment of CrossBoundary Energy.

 

About The CrossBoundary Group

 

The CrossBoundary Group’s mission is to unlock capital to drive sustainable growth in developing and frontier markets.

 

CrossBoundary Advisory provides a range of investment due diligence and transaction services. It has advised on over US$450 million of closed transactions across a range of sectors in Sub-Saharan Africa and in frontier markets globally.

 

CrossBoundary Energy was launched in 2015 and is Sub-Saharan Africa's first investment platform for commercial and industrial solar. It provides solar electricity to African enterprises, through fully-financed Power Purchase Agreements (PPAs). CrossBoundary Energy now has over 28.8 MWp of C&I projects under operation, construction or awarded; the largest portfolio of this class of assets in Sub-Saharan Africa.

 

In total, the CrossBoundary Group has a team of over 50 people located at offices in Bamako, Johannesburg, Lagos, Nairobi, Dubai, New York and Washington, D.C.