Sun King Secures $80 Million for Solar Expansion in Nigeria
Deal News | May 15, 2025 | arch emerging markets partners
Sun King, in collaboration with IFC and Stanbic IBTC Bank, has finalized an $80 million local currency debt facility to enhance solar energy access in Nigeria. The facility, with a significant $50 million contribution from IFC, aims to support off-grid customers in adopting solar solutions through a pay-as-you-go model. This initiative, aligned with the Mission 300 strategy to electrify Sub-Saharan Africa, focuses on providing clean and affordable power, particularly to underserved communities. The investment, supported by both public and private capital, mitigates foreign exchange risks and offers low-income households and businesses flexible payment options that dramatically lower financial barriers. This move supports Nigeria's energy sector development goals and dovetails with broader World Bank-led initiatives to scale up renewable energy access. Endorsed by key stakeholders, including Anish Thakkar of Sun King and Oladele Sotubo of Stanbic IBTC, this financing will promote sustainable development across Nigeria and potentially model a scalable pathway for other regions.
Sectors
- Renewable Energy
- Financial Services
Geography
- Nigeria – The country of focus for the solar expansion initiative, where a significant portion of the population lacks access to electricity.
- Sub-Saharan Africa – The broader region involved in the Mission 300 initiative, aiming for extensive electricity access by 2030.
Industry
- Renewable Energy – The article focuses on solar energy solutions, which are part of the renewable energy sector, aiming to provide sustainable and clean power options.
- Financial Services – The involvement of investments and financing from IFC and Stanbic IBTC Bank highlights the role of financial services in supporting solar energy projects.
Financials
- $80 million – Total facility provided in local currency to expand solar access in Nigeria.
- $50 million – IFC's contribution to the $80 million solar facility.
- $25 million – Senior concessional loan from the Canada-IFC Africa Renewable Energy Program as part of IFC's financing package.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| Sun King | Target company | Company | A leading provider of off-grid solar solutions operating across Africa, focusing on underserved communities. |
| IFC (International Finance Corporation) | Bidding companybuyer | Company | Part of the World Bank Group, involved in structuring the financing facility for solar expansion. |
| Stanbic IBTC Bank | Bidding companybuyer | Company | A subsidiary of Standard Bank Group, contributing to the solar finance facility in Nigeria. |
| Standard Bank Group | Other Company | Company | Parent company of Stanbic IBTC Bank, involved in the financial aspects of the solar project. |
| World Bank Group | Other Company | Company | Supporting Nigeria's energy goals through the Country Partnership Framework and broader electricity access initiatives. |
| Canadian Government/IFC Africa Renewable Energy Program | Other Company | Government | Provides concessional loans to spur private sector financing for climate solutions. |
| Dahlia Khalifa | Other Participant | People | Regional Director for Central Africa and Anglophone West Africa at IFC. |
| Anish Thakkar | Other Participant | People | Co-Founder of Sun King, leading solar energy initiatives in Africa. |
| Oladele Sotubo | Other Participant | People | Chief Executive of Stanbic IBTC Capital Ltd. |