Nigerian company Daystar Power, provider of hybrid solar power solutions to businesses, has announced the closing of a US$20 million facility from the International Finance Corporation (IFC) to help it deliver against its project pipeline.
Founded in 2017, Daystar Power is an off-grid power service provider whose solutions, “Solar-as-a-Service” and “Power-as-a-Service” provide clean and reliable power while significantly reducing clients’ overall power costs.
The company announced a Series B investment of US$38 million to help it deepen its presence in various West African markets in January, and coupled with a US$4 million financing for its Ghanaian subsidiary with DEG has now secured US$62 million in financing this year following the IFC deal.
The IFC will provide a US$20 million loan to Daystar Power’s Nigerian subsidiary for investing in hybrid renewable energy systems. The investment is structured as a US$10 million subordinated loan from the Canada-IFC Renewable Energy Programme for Africa and a US$10 million local currency loan from IFC. Daystar is also working with the Canadian-funded IFC programme Energy2Equal to close gender gaps and increase women’s participation in the renewable energy sector with a focus on leadership roles and technical positions.
Daystar Power plans to expand its installed solar power capacity to 140MW by 2024, growing its client base in the financial services, manufacturing and agricultural sectors. The company currently manages and operates 150 power installations in Nigeria.
“This facility is a major milestone for us. The funds will allow us to grow our installed capacity of solar projects and serve more Nigerian businesses in need of clean and affordable power. But we gain more than just capital. IFC brings a wealth of in-depth knowledge of renewable energy projects and project finance in emerging markets. We’re delighted to work with them,” said Jasper Graf von Hardenberg, chief executive officer (CEO) and co-founder of Daystar Power.