NIGERIA – Starsight, a Nigerian Commercial and Industrial (C&I) solar power supplier, has secured a US$9.2 million debt facility from Chapel Hill Denham Nigeria Infrastructure Debt Fund (NIDF).
The 10-year facility, a first for a solar-based power energy company in Nigeria, will enable the company to not only expand its existing market, but also ensure stable, reliable and professional energy services for C&I clients.
“We are excited to announce the closing of this new debt facility with one of Nigeria’s largest providers of infrastructure financing,” said Starsight CEO, Tony Carr.
“Starsight will use these funds to cement our position as Nigeria’s leading provider of C&I solar solutions. Our Partnership with the NIDF, in addition to our equity investors Helios Investment Partners and Africa Infrastructure Investment Managers and debt investors Norfund and Finnfund, affirms Starsight’s strong financial position, which enables our continued growth and consistent performance.”
The closing of the debt facility will enable Starsight to combine its market-leading technologies and deep in-house engineering capability with the NIDF’s ability to provide long-term, Nigerian Naira-denominated debt financing. Accordingly, this will ensure sustainability and viability regarding clean energy projects in Nigeria.
“As the costs of clean energy solutions become more affordable, combining them with the right type of financing is the key to achieving rapid and massive expansion of these solutions in Nigeria and across Africa,” said NIDF CEO, Anshul Rai.
“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. We are committed to the achievement of the U.N.’s Sustainable Development Goals, and our funding for Starsight will contribute directly to SDG-7, Access to Energy.”
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.
NIDF has a track record of financing more than two dozen infrastructure projects since its inception in 2017.
The fund is in the process of closing its seventh series of fund raising, which will include the participation of the African Development Bank and increase the fund’s capital base to more than 80 billion Naira.
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