CrossBoundary Energy gets $45m in debt funding

From the newsletter

Renewable energy company CrossBoundary Energy has secured $45 million in debt funding from the Emerging Africa & Asia Infrastructure Fund (EAAIF), a blended infrastructure fund. This funding will support its expansion to target more commercial and industrial (C&I) customers with solar, wind, and battery storage solutions.

• The funding marks their second successful raise in 2025, bringing their total capital raised this year to $85 million. In January, the company secured $40 million from the Norwegian Investment Fund (Norfund).

• CrossBoundary Energy operates in 18 African countries and has a portfolio of around $680 million in awarded, signed, in-construction, and operating energy assets. Its projects include 500 MW of solar, wind and thermal assets and over 600 MWh of battery energy storage solutions.

More details

• The investment is part of a broader $300 million senior debt facility led and arranged by The Standard Bank of South Africa. The bank underwrote $140 million for the first tranche of the facility in December of last year.

• This $45 million funding is EAAIF’s first C&I investment in Africa, and it plans to deploy over $1 billion in debt capital to climate-positive infrastructure in Africa and Asia by 2028. It has previously financed utility-scale projects in Africa. In Egypt last year, it provided a $40 million investment in the form of a project development facility for Hassan Allam Utilities to support the development of 2,300 MW of renewable energy projects. It has also financed a $30.3 million investment in a 52 MW solar PV project in Côte d’Ivoire.

• In Africa, access to reliable and affordable power is one of the largest impediments to business growth. In Nigeria, the economy loses as much as $26 billion a year due to blackouts and load shedding. In South Africa, load shedding has led to an annual GDP reduction of 1 to 1.3% since 2007, with daily economic losses estimated between $85 million and $230 million for the country.

• While private energy companies can solve this challenge, access to finance remains a major barrier. The IEA estimates that the energy transition will require $160 billion in annual investment between 2026 and 2030 to align with climate goals, the bulk of which will come from the private sector.

• Industries like mining often have the highest incentive to generate their own power due to their high energy demands and potential for cost savings. CrossBoundary Energy is targeting such customers. It recently financed the construction of wind and solar plants for Rio Tinto mines in Madagascar (pictured, Ehoala Solar Park funded by CrossBoundary in Madagascar). It continues to target high energy-consuming clients, including Unilever, Diageo, Heineken, and the Devki Group.

• Pieter Joubert, President and Chief Investment Officer at CrossBoundary Energy, said, “The success of our current portfolio and future pipeline proves that the demand for energy-as-a-service—particularly in mining, telecommunications, and industrial sectors—is higher than ever. The contribution from EAAIF will significantly support our business by providing finance now that will assist with further scaling of our portfolio.”

Our take

• The successive funding rounds for CrossBoundary Energy indicate the growing confidence investors have in the C&I market in Africa. This perfectly reflects the market shift from centralised to decentralised grids to address the continent's power deficits.

• Though the amount raised is small compared to the urgent need for financing in Africa, it will go a long way to finance many projects. The $160 billion annual investment target set by the IEA signifies the scale of the challenge and the opportunity.

• Commercial banks in Africa have a larger role to play here. However, they need to structure their loans at lower interest rates to attract energy companies and large energy consumers. Private equity investors can also engage in direct project financing, selecting projects that suit their investment portfolios. This way, the financing gap can be closed.