Financial companies FinnFund and Norfund are increasing the line of credit initially granted to Starsight by $10 million in 2019. In West African countries, notably Ghana and Nigeria, the company supplies solar energy to commercial and industrial (C&I) customers.
Good news for Starsight. The line of credit available to this solar energy supplier since 2019 has been increased from $10 million to $20 million. The credit facility is being extended by its initial partners: FinnFund, a Finnish company specialising in development finance; and Norfund, a Norwegian government private equity firm.
Both financial partners indicate that the expansion of their credit line is motivated by Starsight’s balance sheet. Since 2015, the company that supplies solar energy to commercial and industrial (C&I) customers has installed its small power plants at more than 500 sites, with a production capacity of 36 MW and 28 MWh of electricity storage capacity. Starsight intends to use this financing to expand its portfolio of solar PV installations mainly in Nigeria and Ghana.
“By replicating its success from Nigeria to Ghana, the company has broadened its positive impact on reducing energy costs and CO2 emissions, enabling job creation while contributing to more sustainable development. We are proud to be able to continue supporting Starsight in this way,” says Birgit Edlefsen, Norfund’s Chief Investment Officer.
The expansion of Starsight‘s line of credit from $10 million to $20 million comes just weeks after the company signed an agreement for a line of credit of 3.6 billion Nigerian Naira (over $9 million) with Chapel Hill Denham Nigeria Infrastructure Debt Fund (NIDF). The 10-year credit facility is intended, according to the solar energy provider, to significantly expand its existing portfolio, which includes banks, petrol stations, schools, hospitals, agricultural companies and other large commercial and industrial customers in Nigeria.
Jean Marie Takouleu