Daystar Power, a provider of hybrid solar power solutions to businesses in West Africa, has announced the closing of a $20 million facility from the International Finance Corporation (IFC). Following its $38 million series-B fundraise in January, and $4 million in financing for its Ghanaian subsidiary with DEG, Daystar Power has secured $62 million in financing this year.
The IFC will provide the loan to Daystar Power’s Nigerian subsidiary to invest in hybrid renewable energy systems. The investment is structured as a $10 million subordinated loan from the Canada-IFC Renewable Energy Program for Africa and a $10 million local currency loan from IFC. Daystar is also working with the Canadian-funded IFC program, 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, CEO and Co-founder of Daystar Power.