Nigerian startup Daybreak gets $20m loan from IFC to expand in Togo, among others

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Wednesday, 05 May 2021 12:58
Nigerian startup Daybreak gets $20m loan from IFC to expand in Togo, among others

(Togo First) - Last week, the International Finance Corporation approved a $20 million loan for Daybreak Power Solutions, a subsidiary of Daystar Power Group. The monies should facilitate the expansion of the Nigerian hybrid solar power supplier in Togo and two other countries in the sub-region.

In detail, the facility “consists of a $10 million loan in the local currency (ed.note: naira), provided by IFC. The second part will be a subordinate loan of $10 million falling under the IFC’s Renewable Energy for Africa program.”

While the entity plans to raise $100 million over the next three years, it has already managed to raise $38 million in Series B financing from several investors.

Daystar’s arrival in Togo occurs at a time when the Togolese government, under its national electrification strategy, is mustering efforts to achieve universal power coverage by 2030. 

The Nigerian startup is fully owned by the Daystar Group whose main sponsoring shareholder is Sunray Group (19.65%). The latter is the investment vehicle of the group’s founders Christian Wessels and Jasper Graf von Hardenberg. Other shareholders include European development finance institutions such as IFU (28.51%) and PROPARCO (6.62%), STOA (14.26%), Oreon MLI (19.70%), a venture capital firm that actively invests in West Africa, Climate Impact Solutions Fund LP (4.99%) and Avatown Holdings (4.90%).   

Daystar, which currently has an installed solar capacity of 8.1 MWp across 156 sites, wants to install 140 MWp of solar capacity by 2024 via a four-year investment program in the sub-region, phased based on the funds it secures, Togo First learned. 

Daniel Agbenonwossi (intern)

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