Solar energy company, Daystar Power, has sealed a $20-million financing deal with the International Finance Corporation (IFC), a member of the World Bank Group reputed for being the largest global development institution focused on developing the private sector in developing countries.
The deal consists of a $10m loan in local currency from the IFC and another $10m from Canada-IFC Renewable Energy, its Canadian subsidiary.
The IFC will allocate the $20 million fund to expand its provision of solar service support, through its Nigerian subsidiary.
The solar company which is making plans to increase its solar energy portfolio to about 140MW by 2024, has already raised more than $80 million in total fund, this year. Prior to this recent fund from the IFC, it had earlier raised $62 million.
While reacting to the new development, Jasper Graf von Hardenberg, CEO and Co-founder of Daystar Power, described the deal as ‘a major milestone’ that would help the hybrid solar energy provider increase its installed capacity and, as a result, supply power to more Nigerians, especially businesses.
“This facility is a major milestone for us. The funds will allow us to grow our installed capacity of solar projects and serve more Nigerian businesses needing clean and affordable power,” he said.
He further explained that more than just sourcing funds for its hybrid solar renewable projects, the partnership with IFC would bring about a deeper understanding of renewable energy projects and financing, especially in emerging markets.
“But we gain more than just capital. IFC brings a wealth of in-depth knowledge of renewable energy projects and project finance in emerging markets. We’re delighted to work with them,” Mr. Hardenberg said.