CrossBoundary Energy has successfully secured a $140 million senior debt facility from the Standard Bank of South Africa, marking a significant step toward expanding its renewable energy portfolio across the continent. The transaction represents the first tranche of a broader mandate with Standard Bank, which will lead and arrange up to $300 million in senior debt to scale CrossBoundary Energy’s operations in Africa’s Commercial and Industrial (C&I) energy sector.
The financing highlights the increasing role of commercial lenders in advancing renewable energy adoption and the continent’s energy transition. With Africa’s energy deficit being a well-documented impediment to business growth, scalable infrastructure financing is a critical enabler for companies seeking affordable and reliable power solutions.
CrossBoundary Energy, a leading provider of renewable-led power solutions for African enterprises, will use the funds to expand its existing portfolio of renewable energy projects. These projects, valued at $570 million across 18 countries, include 330 MW of solar and wind assets and 178 MWh of battery energy storage systems. Its clientele features prominent corporations in the mining, industrial, and telecommunications sectors, including Rio Tinto, Unilever, Diageo, Heineken, Devki Group, and IHS Africa.
The company’s portfolio demonstrates a diverse approach to renewable energy solutions, encompassing:
- Hybrid power plants for mining operations.
- Rooftop and ground-mount solar PV installations for industrial clients.
- Distributed solar PV and battery systems for telecommunications infrastructure.
The debt facility, fully underwritten by Standard Bank, underscores the bank’s confidence in CrossBoundary Energy’s vision and operational model. Jeanne-Marie Fatti, Senior Vice President of Energy & Infrastructure at Standard Bank, emphasized the importance of such initiatives in advancing Africa’s renewable energy goals:
“There is a growing need for innovative energy solutions in Africa. Companies like CrossBoundary Energy are addressing this challenge holistically through renewable-led systems. Standard Bank is committed to supporting pioneers like CrossBoundary on their growth trajectory.”
Despite Africa’s abundant renewable energy resources, financing constraints remain a major hurdle. The International Energy Agency (IEA) estimates that achieving climate goals will require an annual investment of $160 billion in the continent’s energy sector between 2026 and 2030, with the private sector expected to contribute a significant portion.
Pieter Joubert, President and Chief Investment Officer of CrossBoundary Energy, highlighted the transformative potential of the partnership with Standard Bank:
“Scalable, affordable infrastructure financing solutions are a catalyst for unlocking reliable and affordable power access for businesses. This partnership will allow us to expand and accelerate energy-as-a-service to African customers, ultimately improving the sustainability and competitiveness of businesses across the continent.”
Founded in 2015 and Headquartered in Mauritius, with regional offices in Kenya, Nigeria, South Africa, and Ghana, CrossBoundary Energy is at the forefront of Africa’s renewable energy transition. By offering fully financed solutions, the company aims to mitigate the financial and operational risks faced by enterprises seeking to adopt renewable energy.
This latest financing initiative not only underscores the viability of renewable energy in Africa but also sets a benchmark for commercial funding in the sector. As the continent grapples with its energy challenges, transactions like this highlight the critical role of private capital in bridging the gap and supporting sustainable growth.