The Lion’s Head Group-managed fund, the Facility for Energy Inclusion (FEI), has provided €7.5m of debt to SolarX, a leading West-African C&I player with a strong focus and expertise in the Sahel region.
On December 1st, 2022, FEI signed facility agreements to provide €7.5m of senior debt to SolarX and its subsidiaries. This transaction structured by FEI provides SolarX with the necessary funding and flexibility to expand its portfolio in West Africa. SolarX is the leading provider of Energy-as-a-Service solutions including energy efficiency services and commercial and industrial solar solutions in the Sahel region (mainly Mali, Burkina Faso, Senegal and Cote d’Ivoire).
By deploying and financing solar and renewable energy assets, SolarX helps B2B clients to access a cheaper and more reliable source of energy. Its strong local expertise and footprint give SolarX a competitive advantage and a deep market understanding which allow SolarX to put client energy needs at the center of its business development strategy.
Lion’s Head is an investment bank and asset manager, operating across frontier and emerging markets. Lion’s Head Asset Management (LHGP Asset Management) manages four pioneering funds, including: (i) the African Local Currency Bond Fund (ALCBF), a ground-breaking investment vehicle established to support local currency capital markets, (ii) Off-Grid Energy Access Fund (OGEF) which supports companies in off grid energy such as SHS and small- medium Mini-Grids, (iii) Facility for Energy Inclusion which support companies that provide a range of renewable energy solutions such as medium – large Mini- Grids, C&I and IPP with a maximum capacity of 25 MW, and (iv) AfricaGoGreen Fund which supports companies combating climate change by reducing the use of fossil fuels through new technologies and that increase energy efficiency and promote economic development in high impact target sectors. LHGP Asset Management has over $600 million of assets under management with investments in more than 25 African countries.
FEI is designed to support small-scale independent power producers delivering power to the grid, mini-grids, commercial and industrial and captive power projects. FEI was set up by the African Development Bank as part of its New Deal for Africa initiative. In addition to the investment by the AfDB, FEI received equity funding from the German Federal Ministry for Economic Cooperation and Development through KfW and Norfund, and a loan commitment from the Austrian Development Bank. The AfDB also invested on behalf of the Clean Technology Fund and the European Commission.
The transaction was supported by FEI’s Project Preparation Facility (“PPF”), funded by the Global Environment Facility, through the African Development Bank. The PPF provides returnable grant funding for last-mile processes that are crucial to closing transactions and to fund due diligence and preparatory costs incurred in establishing innovative structures or transactions that FEI is seeking to lend to.
“2022 was a fantastic transformational year for SolarX and raising our first commercial debt facility demonstrates SolarX’s strong economic case both on market demand and execution side. I would like to thank the Lion’s Head team for the trust and the professionalism in leading this transaction,” said Karim Ghammache, CEO of SolarX.