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FEI Provides $30m to Equator Energy

Staff writer
June 16, 2023, 10:46 p.m.
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Word count: 371

The Facility for Energy Inclusion (FEI) managed by Cygnum Capital (formerly Lion’s Head Group) has signed a $30m multi-country facility to finance the assets of Equator Energy, a commercial and industrial (C&I) solar operator in East Africa.

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The Facility for Energy Inclusion (FEI) managed by Cygnum Capital (formerly Lion’s Head Group) has signed a $30m multi-country facility to finance the assets of Equator Energy, a commercial and industrial (C&I) solar operator in East Africa.

Structured by FEI as a long-term senior debt facility, this transaction provides Equator Energy with the financing and flexibility to scale its portfolio.  

“C&I renewables’ investments enable the uptake of cleaner and cheaper sources of electricity for businesses, driving economic growth. With a strong portfolio of operating assets and an impressive pipeline of customers, Equator Energy is the leading C&I solar developer in East Africa. FEI demonstrates its ongoing commitment to the sector and our clients with this transaction. We look forward to supporting Equator Energy’s growth trajectory as it continues to provide affordable clean energy to businesses in Africa through simple and integrated solar energy solutions”, said Carmen de Castro, Managing Director and Fund Lead at Cygnum Capital.

Equator Energy owns one of the largest C&I solar power portfolios in East Africa, primarily in Kenya and Uganda, with further operations in Zimbabwe, Somalia, South Sudan, and Gambia and customers across much of Sub-Saharan Africa.

Since its inception in 2016, Equator Energy has shown strong and sustained growth, with its portfolio currently standing at 35MW of solar plants in operation and over 65MW signed and the ambition to reach 300MW by 2030.

This transaction follows the announcement of the acquisition of a majority stake in Equator Energy by a consortium of IBL Energy Holdings, a fully owned subsidiary of the IBL Group, and STOA, an impact fund created by Caisse des Dépôts et Consignations and Agence Française de Développement.  

“We are excited to announce this long-term senior debt facility from FEI, which will drive the next phase of growth for Equator Energy. With their support, we will be able to expand our reach to new customers and markets, building on our over 100 existing customers. This investment by FEI, one of the largest single lender facilities in the C&I space, following on from the acquisition announcement by IBL Energy and STOA, demonstrates the strength of our team, our customers, and our markets “, said Sebastian Noethlichs, CEO and Founder of Equator Energy.

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