14 DECEMBER 2020
Starsight secures N3.6 Billion Debt Facility from Nigeria Infrastructure Debt Fund
Lagos – 14th December 2020: Starsight, the leading Commercial and Industrial (“C&I”) solar power provider in West Africa, and Chapel Hill Denham Nigeria Infrastructure Debt Fund (“NIDF”) have announced the successful closing of a N3.6 billion senior debt facility (c. $9.2 million) to support 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 Commercial & Industrial customers.
The closing of the debt facility marks another major milestone for both Starsight and NIDF. It combines Starsight’s market-leading 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. The transaction represents the first time that a solar power-based energy company in Nigeria has been successfully backed by long-term Naira financing.
Starsight has completed over 500 sites in Nigeria since 2015. The company currently has 36 MW of installed generating capacity and 28 MWh of storage across Nigeria and Ghana. The debt facility will enable Starsight to serve C&I clients in Nigeria with the reliability and professionalism that has come to define the Starsight brand.
NIDF has a current capital base of c. 60 billion Naira and 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.
Tony Carr, Starsight’s CEO, commented, “We are excited to announce the closing of this new debt facility with one of Nigeria’s largest providers of infrastructure financing. 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.”
Anshul Rai, the CEO of NIDF, commented, “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. 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 UN’s sustainable Development Goals and our funding for Starsight will contribute directly to SDG-7, Access to Energy.”
ABOUT STARSIGHT
Founded in 2015, Starsight is the leading West African Commercial & Industrial (C&I) energy-as-a-service provider. It has deployed approximately 36 MW of generation assets and 28 MWh of storage at over 500 sites in all Nigerian states and Ghana. The Company’s team of highly experienced professionals provides power solutions to a diverse clientele, including banks, gas stations, schools, and large commercial agricultural companies. Starsight’s proprietary smart technology optimizes energy consumption enabling customers to significantly reduce energy costs and boost profitability without incurring any upfront expense. Starsight delivers an end-to-end service, starting with assessing a client’s energy needs to the installation and maintenance of a renewable energy solution. This is then followed by ongoing technical support. Starsight’s long-term relationships with its blue-chip clients reflect the quality of its in-house engineering, procurement, and construction services, along with the reliability of its operations, maintenance, and customer service. Together these provide customers with the peace of mind that all their power-related issues are in trustworthy hands.
Starsight has consistently maintained the highest ESG credentials and continues to reduce its customers’ carbon footprint and harmful diesel emissions. The Company is backed by Helios Investment Partners and Africa Infrastructure Investment Managers.
Nigeria: +234 (0) 809 489 7800
Ghana +233 (0) 200 511 100
ABOUT NIGERIA INFRASTRUCTURE DEBT FUND
Nigeria Infrastructure Debt Fund is Nigeria’s largest and Africa’s first-ever listed infrastructure fund, providing long-term, Naira denominated financing for infrastructure projects in Nigeria. NIDF enables project sponsors to avoid the unsustainable mismatches of currency and tenor between their financing and their revenues/cash flows.
With the current capital base of c. 60 billion Naira, NIDF has a diversified and growing portfolio of infrastructure loans in a broad range of sectors including power generation, energy infrastructure, transportation, telecom and social infrastructure (education and healthcare).
NIDF’s investor base includes the African Development Bank (AfDB), Nigeria Sovereign Investment Authority (NSIA) and nearly all the pension funds operating in Nigeria. By mobilising domestic capital for financing Nigeria’s infrastructure, NIDF has established a template that can bridge the infrastructure deficit facing not just Nigeria but in countries across Africa.