Standard Chartered has acted as sole placement agent, settlement agent and sustainability structurer on a $50m senior unsecured green bond private placement for African Frontier Capital (AFC), a transaction aimed at accelerating access to clean energy across sub-Saharan Africa.


Backed by a full financial guarantee from the Green Guarantee Company and supported by international development partners, the funding will help finance the rollout of solar-home systems by d.light in underserved and rural communities. The initiative is expected to expand access to affordable, reliable and clean electricity to approximately 4.3 million people.

The bond has a maturity of four years and is to be listed on the International Securities Market of the London Stock Exchange, with participation from a group of UK and US institutional investors. It has been assigned a rating of BBB by Fitch.

This transaction demonstrates how private placements can provide issuers with access to longer-term institutional capital, supplementing more traditional financing channels. These structures allow issuers to diversify funding beyond bank and development finance institutions, access global investor pools, and build a track record ahead of future public-bond issuance.

The inclusion of a financial guarantee from GGC supports execution by reducing risk and broadening the investor base, helping companies operating in emerging markets to access capital markets and scale their business models.

Mobilising capital at scale

Eric De Moudt, chief executive officer of the African Frontier Capital, said: “This transaction is a significant step forward in demonstrating how private capital can be mobilised at scale to support distributed renewable energy across Africa.

"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. We believe this transaction establishes an important blueprint for future capital-markets financing in the sector and are proud to have partnered with GGC on one of its inaugural transactions.”

Lasitha Perera, chief executive officer of the Development Guarantee group, said: “We are proud to have closed the Green Guarantee Company’s second transaction, a major milestone in mobilising climate finance and accelerating sustainable investment.

"We are grateful to our partners for bringing these impactful deals to market and laying the groundwork for many more transformative transactions as we continue scaling our impact and mobilising capital where it is needed most.”

Rob Mason, Senior Originator: Debt Capital Markets Africa, Standard Chartered, said: “This transaction demonstrates how innovative capital markets structures can mobilise private capital for high-impact solutions.

"By combining a green-bond private placement with an investment grade third-party financial guarantee, we are supporting the expansion of distributed solar energy and helping improve access to clean power across sub-Saharan Africa.”

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