Independent UK law firm Burges Salmon has played a key advisory role in a $10 million long-term senior debt financing arrangement for the Facility for Energy Inclusion (FEI). The financing will enable Cicada Solar Limited, a leading provider of commercial and industrial solar solutions in Zimbabwe, to scale its operations and bridge the country’s significant power supply gap.
Zimbabwe’s economic growth is heavily constrained by inadequate energy infrastructure, creating an urgent demand for sustainable and cost-effective solutions. Cicada Solar plans to address this issue by expanding renewable energy access and offering vendor financing solutions to businesses. Burges Salmon’s Banking and Finance team provided essential legal guidance on the deal, which aims to bolster the provision of renewable energy to commercial and industrial sectors in Zimbabwe.
FEI (managed by Cygnum Capital, one of the largest asset managers on the African continent) supports the expansion of Africa’s energy infrastructure, with a particular focus on small renewables including distributed energy solutions. FEI is a market leader in the financing of commercial and industrial solar projects across the continent, and this latest financing to Cicada highlights FEI’s ability to invest in frontier markets which otherwise have limited access to long-term infrastructure financing. Cygnum Capital has c. USD 1.1 billion of assets under management, with investments in 35 African countries.
The multi-disciplinary team from across Burges Salmon’s Energy and Infrastructure sectors advising on the transaction comprised Stuart McMillan, Luke Addison, James Horton, Uba Emole, Emily Cranston, Alice Burns, and Zar Wilson.
Carmen de Castro, Managing Director of FEI, comments: “Further demonstrating its leading role in the C&I sector in Africa, the Facility for Energy Inclusion has been able to leverage its experience to deliver this milestone transaction in Zimbabwe. It was a pleasure to work with the Burges Salmon team, whose experience, responsiveness, and thoroughness were instrumental in supporting us throughout this transaction.”
Stuart McMillan adds: “It has been a pleasure working once again with the Facility for Energy Inclusion on this transaction, which will significantly enhance the provision of renewable energy in Zimbabwe. We are proud to support clients in enabling the provision of sustainable and affordable power across the continent of Africa.”