Norfund, the Norwegian government’s investment fund for developing countries, and pension fund KLP have made a USD-40-million (EUR 39.6m) equity investment in CrossBoundary Energy which owns and operates renewable power plants in Africa.
The financing commitment will enable CrossBoundary to expand its portfolio of renewable energy solutions for the African commercial and industrial (C&I) segment. The investment was made through the Norwegian parties’ joint venture company KLP Norfund Investments AS, CrossBoundary said on Thursday.
The funding comes on the heels of a USD-40-million equity investment in CrossBoundary by ARCH Emerging Markets’ Africa Renewable Power Fund in 2020.
CrossBoundary Energy, part of the CrossBoundary Group, develops and operates distributed renewable power projects and sells electricity to African businesses through power purchase agreements. The company says it is currently working on a portfolio with over USD 188 million worth of projects for over 30 corporate clients that will facilitate the addition of 150 MWp of solar, 12 MW of wind and 50 MWh of battery storage capacity. The list of CrossBoundary’s customers includes consumer goods giant Unilever, mining group Rio Tinto, Dutch brewer Heineken and Belgian peer AB InBev.
“We look forward to drawing on Norfund’s significant experience as we seek to deliver an operational portfolio of over $300M in assets within the next 5 years,” said Pieter Joubert, President and Chief Investment Officer of CrossBoundary Energy.
(USD 1.0 = EUR 0.990)
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