By: Money web

Absa Corporate and Investment Banking (CIB) has committed up to $100 million (R1.7 billion) to CrossBoundary Energy (CBE) to support the rollout of renewable energy projects across the continent.

The funding package comprises three facilities – a subordinated debt facility, an equity bridge loan, and senior debt.

The structure is designed to support CBE’s equity requirements, long-term asset financing needs, and early-stage procurement of materials for new renewable energy projects.

CBE is one of the largest private power providers to Africa’s commercial and industrial sector, supplying zero-capital-expenditure energy solutions to mining, heavy industry and telecoms companies.

The early works facility, which became effective in September, will enable the continued construction of CBE’s pipeline of solar and battery energy storage projects.

The financing will also support large-scale projects such as the solar PV and battery storage baseload facility for Kamoa Copper in the Democratic Republic of Congo – the continent’s biggest copper mine.

Pieter Joubert, deputy CEO at CBE, says the energy transition holds significant potential in Africa, where inadequate, costly and unreliable power has constrained businesses.

The additional capital will help the company continue supplying reliable and clean energy to clients across the continent, he adds.

Absa CIB describes the partnership as part of its commitment to enabling a just energy transition and improving energy security for African businesses.

According to Shirley Webber, managing executive for resources and energy at Absa CIB, access to reliable and sustainable power is critical for the continent’s competitiveness and economic performance.