Absa Group, the Johannesburg-based financial services provider led by South African executive Kenny Fihla, has committed up to R1.7 billion 100 million to CrossBoundary Energy CBE to expand renewable power projects across Africa, marking one of the largest recent financing deals aimed at easing the continents chronic electricity shortages.
The funding package, arranged by Absa Corporate and Investment Banking, includes three separate facilities: a subordinated debt facility, an equity bridge loan and senior debt. Together, these facilities cater to CBE's equity requirements, asset financing and the early equipment procurement for new solar and battery projects. Absa sees the structure as a practical way to help developers secure capital at the stages when many African energy projects typically stall.
Absa pushes sustainable energy support