Bank of America, CrossBoundary explore blended finance for African renewables
Crossboundary Energy installation for Unilever Tea Kenya. Image by Bank of America.
November 9 (Renewables Now) - Bank of America Corp (NYSE:BAC) and CrossBoundary Energy are working on blended financing to back CrossBoundary’s investments in renewable energy projects for commercial and industrial businesses across Africa, the bank said on Tuesday.
The parties are studying opportunities with development finance institutions to structure a blended finance loan facility that will help CrossBoundary deliver its development pipeline of 255 MW of solar and wind and 50 MWh of storage projects.
CrossBoundary develops distributed renewable energy projects for businesses across Africa. Its customers include Unilever, Diageo, Rio Tinto, Heineken and AB InBev. Currently the company is delivering a USD-230-million (EUR 230m) portfolio of projects for more than 30 clients in 14 African countries.
The developer announced its collaboration with Bank of America for a blended finance transaction at COP27 in Egypt.
"We believe emerging markets need the net zero transition as much as developed markets, and as part of our own commitment to achieve net zero before 2050 and our USD 1.5 trillion sustainable finance commitment by 2030, are ensuring climate finance capital are flowing in a targeted and equitable manner,” commented Karen Fang, Bank of America global head of sustainable finance.