- The Facility for Energy Inclusion (FEI) has signed its first transaction in the commercial and industrial solar market, acting as lead arranger for a $33.4m multi-country facility for Solarise Africa’s subsidiaries in Africa.
- FEI will provide $21.4m of the total amount and is being joined by Oikocredit ($7m) and Lion’s Head managed fund, AfricaGoGreen Fund (AGG, $5m).
Solarise Africa is a pan-African Energy-as-a-Service company that provides reliable and affordable decentralised energy solutions for businesses in Africa. Through close collaboration with its partners, the company offers innovative full-service solutions that cover designing, building, financing, and maintaining renewable energy installations.
The transaction provides Solarise Africa with the necessary funding and flexibility to substantially expand its portfolio in Kenya and other selected African countries. The transaction was supported by FEI’s Project Preparation Facility (PPF), funded by the Global Environment Facility, through the African Development Bank.
The PPF provides returnable grant funding for last-mile processes that are crucial to closing transactions and to fund due diligence and preparatory costs incurred in establishing innovative structures or transactions that FEI is seeking to lend to.
FEI is designed to support small-scale independent power producers delivering power to the grid, mini-grids, commercial and industrial and captive power projects. FEI was set up by the African Development Bank as part of its New Deal for Africa initiative.
“We are very honoured and grateful for the confidence the investors have shown in us. As the largest debt raise in Africa’s C&I space to date, this proves that Solarise Africa has a solid business model. We are proud to welcome these three prestigious new investors – Lead arranger FEI, Oikocredit and AfricaGoGreen – to our current group of investors. Throughout 2022, we have significantly grown our footprint and portfolio, and with this new loan, we will be able to catapult our efforts to advance renewable energy adoption in Africa,” said Jan Albert Valk, CEO and Co-Founder of Solarise Africa.
Author: Bryan Groenendaal