Kenya-based Crossboundary Energy Access (CBEA), a mini-grid infrastructure fund, has raised $25 million to back renewable energy projects across the continent.
The funding was raised from ARCH Emerging Markets Partners limited, Bank of America, and Microsoft Climate Innovation Fund
In this round, the ARCH made $10 million equity investment as Microsoft and Bank of America injected $15 million mezzanine financing — a debt that can be turned into equity.
Crossboundary says it will use the new funding to unlock an additional $25 million in senior debt, helping it secure capital to the tune of $50 million, which will also be used to finance near-term solar powered mini-grids.
The fund, which was set up in 2019 with the initial backing of the Rockefeller Foundation, Ceniarth, DOEN Foundation, Shell Foundation and UK Aid, plans to inject $150 million in solar projects over the next two years.
The CBEA has worked with a number of solar companies in Nigeria, Kenya, Ghana, and Rwanda, including Topec, SolarAfrica, PowerGen, Centennial, solarcentury and soventix to deploy multiple solar mini-grids.