IFC to provide $20m debt finance to Nigerian off-grid power firm

The International Finance Corporation (IFC), the private sector arm of the World Bank Group, has announced that it plans to provide $20 million to Nigerian off-grid power service provider, Daybreak Power Solutions, a subsidiary of Daystar Power Group.

The $20 million investment from IFC consists of a $10 million loan given in local currency from IFC’s account in addition to another $10 million subordinated loan from the Canada-IFC Renewable Energy Programme for Africa.

According to a statement from the Daystar Power Group, the investment is still going through regulatory approval by the IFC and when approved, the funds will be used as part of a $40 million Phase 1 capacity expansion project.

This investment reflects IFC’s launch of the Climate Change Investment Program for Africa (CIPA), a sustainable energy financing and advisory program in sub-Saharan Africa, where demand for power and water is increasing along with risks associated with climate change.