CrossBoundary Energy, a prominent developer, owner, and operator of commercial and industrial (“C&I”) renewable energy systems, has successfully raised a significant investment of US$50 million. The investment comprises a $30 million multi-country facility provided by the Facility for Energy Inclusion (“FEI”) managed by Cygnum Capital (formerly Lion’s Head Group). Additionally, FEI is in the process of arranging an additional $20 million for CrossBoundary Energy, expected to be finalized in the third quarter of 2023.
The investment is intended to advance CrossBoundary Energy’s C&I portfolio across Africa. The facility agreement, structured by FEI as an innovative construction loan facility, enables CrossBoundary Energy to scale its investments in tailored, fully financed renewable energy solutions for corporate customers. By avoiding upfront capital expenditure and technical risks, these customers can benefit from cost-effective, cleaner, and more reliable power. CrossBoundary Energy collaborates closely with its partners to design, build, finance, and maintain renewable energy installations that meet the unique needs of its clients.
Why The Investors Invested
The investors recognize the immense potential of the commercial and industrial (“C&I”) renewable energy sector in driving clean and sustainable growth across Africa. With increasing awareness of the environmental impact of traditional energy sources and the need to transition towards cleaner alternatives, the demand for renewable energy solutions in the commercial and industrial sectors is on the rise. CrossBoundary Energy has positioned itself as a leading developer, owner, and operator of such solutions, making it an attractive investment opportunity for the investors.
Moreover, the investors were likely motivated by the proven track record and market reputation of CrossBoundary Energy. The company has successfully delivered a portfolio of over $285 million worth of solar renewable energy assets for notable clients such as Unilever, Diageo, Rio Tinto, Heineken, and AB InBev. This demonstrated ability to secure and serve reputable corporate customers reflects the company’s strong market position and the trust it has garnered in the industry.
Furthermore, the investment aligns with the investors’ objective of supporting businesses across Africa in accessing cheaper, cleaner, and more reliable power. By providing tailored, fully financed renewable energy solutions, CrossBoundary Energy enables corporate customers to avoid upfront capital expenditure and technical risks while still benefiting from the advantages of renewable energy, including cost savings and improved environmental sustainability. This customer-centric approach resonates with the investors’ commitment to promoting sustainable growth and providing tangible value to African businesses.
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Additionally, the investors likely considered the potential for attractive returns on their investment in the renewable energy sector. As the demand for clean energy continues to rise and government policies increasingly favor renewable energy development, there is a favorable market outlook for companies like CrossBoundary Energy. The company’s demonstrated ability to secure long-term power purchase and lease agreements with corporate clients indicates a stable revenue stream and the potential for sustainable profitability.
A Look at CrossBoundary Energy
CrossBoundary Energy, founded in 2011, is a leading developer, owner, and operator of distributed renewable energy solutions for businesses in Africa. The firm specializes in providing cheaper and cleaner energy through power purchase and lease agreements. Its current portfolio comprises over $285 million worth of solar renewable energy assets, serving clients such as Unilever, Diageo, Rio Tinto, Heineken, and AB InBev.
As a member company of the CrossBoundary Group, a mission-driven investment firm, CrossBoundary Energy is committed to leveraging capital for sustainable growth and strong returns in underserved markets. The company has been recognized for its outstanding contribution to the solar industry and was awarded the title of “Solar Company of the Year” by the Africa Solar Industry Association in 2022.
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CrossBoundary Energy operates primarily in Africa’s corporate and industrial sectors, delivering tailored renewable energy solutions that meet the specific needs of its clients. The company’s comprehensive services include designing, building, financing, and maintaining renewable energy installations. By providing fully financed solutions, CrossBoundary Energy enables businesses to access affordable and reliable renewable energy without the burden of upfront capital expenditure and technical risks.
Charles Rapulu Udoh
Charles Rapulu Udoh is a Lagos-based lawyer, who has several years of experience working in Africa’s burgeoning tech startup industry. He has closed multi-million dollar deals bordering on venture capital, private equity, intellectual property (trademark, patent or design, etc.), mergers and acquisitions, in countries such as in the Delaware, New York, UK, Singapore, British Virgin Islands, South Africa, Nigeria etc. He’s also a corporate governance and cross-border data privacy and tax expert.
As an award-winning writer and researcher, he is passionate about telling the African startup story, and is one of the continent’s pioneers in this regard