Nigeria: C&I solar provider secures local currency debt facility
In West Africa, a commercial and industrial (C&I) solar power provider Starsight and Chapel Hill Denham Nigeria Infrastructure Debt Fund (NIDF) have announced the successful closing of a N3.6 billion ($9.2m) senior debt facility.
This C&I local currency transaction represents the first time that a solar power-based energy company in Nigeria has been successfully backed by long-term Naira financing. The facility is aimed at supporting the rapid growth of climate-friendly solar-hybrid energy solutions for C&I customers across Nigeria.
Starsight will use the 10-year facility to substantially expand its existing portfolio that includes banks, gas stations, schools, hospitals, agricultural companies, and other large C&I customers. Anshul Rai, the CEO of NIDF, commented: “By eliminating the FX risk and aligning the debt profile with that of the underlying assets, our financing enables Starsight to de-risk its business model and position itself for aggressive growth.”
Milestone for C&I local currency market
The closing of the debt facility marks another major milestone for both Starsight and NIDF. It combines Starsight’s technology and deep in-house engineering capability with NIDF’s ability to provide long-term Naira denominated debt financing crucial to ensuring the long-term viability of clean energy projects in Nigeria. Starsight has completed over 500 sites in Nigeria since 2015. The company currently has 36MW of installed generating capacity and 28MWh of storage across Nigeria and Ghana.
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