- Starsight Energy reaches a $20m refinancing agreement.
Starsight Energy has disclosed the conclusion of a competitive local currency refinancing agreement with Chapel Hill Denham Nigeria Infrastructure Debt Fund (NIDF). The deal is for a 10-year ₦8 billion refinancing of $20 million of current debt with two development finance institutions (DFIs) invested in Africa’s energy sector.
According to a report from ESI Africa, the refinancing was made possible through close collaboration by the Starsight and NIDF teams with the necessary flexibility to ensure closing on the targeted date. The new facility – Starsight’s second with NIDF – replaces the company’s current facilities with Norfund (the Norwegian Government Investment Fund for Developing Countries) and Finnfund (the Finnish Fund for Industrial Cooperation Ltd).
Starsight’s Group Chief Financial Officer, Van Zijl, noted, “the DFI facilities were secured when we were a much smaller company when most funders did not show a substantial interest in Starsight. Norfund and Finnfund were invaluable funders to the company in its early guise, and we remain very grateful for their support to date. The logic for refinancing the US dollar debt in local currency was too compelling to ignore”.
Van Zijl added, “as we continue to expand in Africa, we closely monitor the local economic situation and currency trends, ensuring our capital structure and FX exposure is optimal for that specific market.”