Off-grid solar energy firm Sun King has recently secured $80 million in local currency debt financing from the International Finance Corporation (IFC) and Stanbic IBTC Bank, a subsidiary of the Standard Bank Group, to support the company’s efforts in providing affordable solar solutions to households and businesses lacking reliable electricity access in Nigeria.
In Nigeria, inadequate power supply remains a critical challenge hindering economic development and living standards. Despite progress in power infrastructure in recent years, nearly 40% of the population still lacks stable electricity access.
The $80 million financing will accelerate Sun King’s strategic deployment in Nigeria, covering its diverse portfolio of solar products. From basic household lighting and mobile charging systems to robust rooftop solar solutions comparable to grid-supplied power, the funding will facilitate further development and expansion. For off-grid families in remote areas, Sun King’s lighting and charging systems will significantly improve quality of life by enabling constant connectivity. For small businesses, rooftop solar solutions will provide stable power, reduce operational costs, and enhance productivity.
Denominated entirely in Nigerian naira, the financing mitigates risks associated with foreign exchange fluctuations. The IFC contributed 50 billion, with 25 million from its own account and an additional 25 million US dollars provided in the form of a hybrid financing concessional loan through the Canada-IFC Africa Renewable Energy Programme (AREI). Stanbic IBTC Bank provided 30 million. The senior loan, with a maturity of up to seven years, offers Sun King sufficient financial flexibility and time to expand its operations in Nigeria.
A key highlight of the financing is Sun King’s flexible “Pay-As-You-Go” (PAYG) model, which allows users to purchase solar equipment through affordable, small installments, significantly lowering the barrier to adoption.
