African Frontier Capital (AFC) has secured a US$50 million green bond to finance the expansion of solar energy systems across underserved communities in sub-Saharan Africa, in a move aimed at accelerating access to clean and reliable electricity.
The senior unsecured green bond private placement was arranged by Standard Chartered, which acted as sole placement agent, settlement agent and sustainability structurer for the transaction.
The funding is backed by a full financial guarantee from the Green Guarantee Company and supported by international development partners.
The proceeds will support the rollout of solar home systems by d.light in rural and low-income communities, with the initiative expected to provide affordable and clean electricity access to about 4.3 million people.
The four-year bond will be listed on the International Securities Market of the London Stock Exchange and attracted investment from institutional investors in the United States and United Kingdom. The bond has received a BBB rating from Fitch Ratings.
More Read
The transaction highlights growing efforts to use private capital markets to finance renewable energy projects in Africa, where millions of people still lack reliable electricity access.
AFC Chief Executive Officer Eric De Moudt said the deal demonstrated how private investment could be mobilised at scale to support distributed renewable energy projects across the continent.
“By combining AFC’s operating track record with GGC’s guarantee and Standard Chartered’s capital-markets expertise, we were able to connect international institutional investors with a proven portfolio of African assets,” he said.
More Read
The green bond structure allows AFC to diversify funding sources beyond traditional bank lending and development finance institutions while building credibility for future access to public bond markets.
The guarantee provided by the Green Guarantee Company reduces investor risk and helps companies operating in emerging markets attract larger pools of international capital.
Development Guarantee Group Chief Executive Officer Lasitha Perera said the transaction marked a major milestone in expanding climate finance and supporting sustainable investment.
“This is a major milestone in mobilising climate finance and accelerating sustainable investment,” he said.
Standard Chartered’s Senior Originator for Debt Capital Markets Africa, Rob Mason, said the deal showed how innovative financing structures could unlock private capital for high-impact energy solutions.
The transaction comes as African governments and investors seek to close the continent’s energy gap through renewable solutions, particularly decentralised solar systems that can serve communities beyond the reach of traditional electricity grids.
