CrossBoundary Energy Access (CBEA) has secured USD 25mn from three investors—ARCH, Bank of America and Microsoft Climate Innovation Fund to finance solar powered mini-grids across Africa. This latest round of funding leverages an additional USD 25mn in senior debt to deploy USD 50mn of capital to its near-term pipeline of solar powered mini-grids.
Confidence from ARCH, Bank of America, and Microsoft, reflects the growing maturity of both the mini-grid sector, and its ability to attract institutional capital. Our investors believe the mini-grid sector is ready to scale and that 2022 will mark an inflection point in its growth. Work is still needed on every aspect of mini-grids including regulation, business model, and subsidy programs
Gabriel Davies, Managing Director and Head of Energy Access CBEA
In total, the investment firm plans to deploy a total of USD 150mn over the next two years to bring clean energy to one million people. these mini-grids combine solar and batteries to provide 24/7 grid-quality power to households and businesses.
ARCH Emerging Markets Partners Limited was advised by Bowmans Kenya. The lenders were advised by Latham & Watkins.