On November 21, 2018, the Overseas Private Investment Corporation (OPIC) said it had committed $6 million, about Sh615 million, in debt financing to CrossBoundary Energy, a Sub-Saharan Africa platform focused on commercial and industrial solar.
According to a statement from CrossBoundary Energy, the money was meant to help fund six captive solar PV projects that were already under construction or in development. The projects, which together exceed 5.75 megawatts, are spread across Kenya, Rwanda and Ghana and serve multinational firms as well as local companies.
CrossBoundary Energy was established in 2015 to provide solar power to African enterprises. Under its model, clients enter long-term power purchase agreements and buy solar electricity without putting up upfront capital or taking on the technical risk of construction and maintenance.
The company said it finances, builds, owns and operates the systems for customers, with the aim of delivering cheaper and cleaner electricity.
OPIC President and chief executive Ray W. Washburne said, “We’re pleased to be supporting them (CrossBoundary Energy) to expand the provision of cleaner and cheaper power that helps African enterprises grow and bolsters the mission of Power Africa.”
CrossBoundary Group co-Managing Partner Matthew Tilleard said the financing would give the company more affordable capital and help businesses across Sub-Saharan Africa access solar power that cuts costs and carbon emissions.
Jake Cusack, also a co-Managing Partner of the CrossBoundary Group, said OPIC’s commitment would support part of CrossBoundary Energy’s current portfolio as the firm continued to expand its commercial pipeline across Sub-Saharan Africa.
OPIC has worked with CrossBoundary Energy before. In 2014, it provided a grant through the U.S. Africa Clean Energy Finance Initiative (ACEF) to support the company’s establishment.
CrossBoundary Energy described itself as the first investment platform in Africa dedicated to financing captive commercial and industrial solar PV projects. It said its portfolio now stands at more than 28.8 MWp of projects under operation, construction or awarded, which it described as the largest such portfolio in Sub-Saharan Africa.
The CrossBoundary Group said it seeks to unlock capital for sustainable growth in developing and frontier markets. It said the group has more than 50 staff across offices in Bamako, Mali; Johannesburg, South Africa; Lagos, Nigeria; Nairobi, Kenya; Dubai, UAE; and in New York and Washington, D.C.
