Standard Bank Backs Up to $370M Solar Financing
Standard Bank's financing deal with Solarcentury Africa funds a major expansion of Zambia's Mailo solar plant.
Updated on Nov. 3, 2026 in Financial Services
Standard Bank has signed a financing agreement worth up to $370 million with Solarcentury Africa, with an initial $86.2 million committed. Part of the funding will expand Zambia's Mailo solar power plant by 59 MWp.
Why it matters
The deal shows commercial banks financing merchant renewable power projects, which carry market risk because electricity is sold to multiple buyers or through regional markets. It also supports Solarcentury Africa's goal of a 500 MW portfolio of owned renewable assets by 2030.
Standard Bank's up-to-$370 million agreement with Solarcentury Africa compares with its $40 million in financing to the company in 2025, and the initial $86.2 million tranche is the only portion specified as committed. The remaining amount's timing has not been detailed.
The players
Standard Bank
Standard Bank is a major South African commercial bank with lending operations across Africa that has financed multiple large renewable energy projects in recent years.
Solarcentury Africa
Solarcentury Africa is a renewable energy developer operating merchant solar power plants that sell electricity to multiple buyers or through regional electricity markets.
FMO
FMO is the Dutch development bank that provides financing for private sector projects in emerging markets and is participating in the initial tranche of this deal.
The details
The financing will refinance an earlier loan used to build Solarcentury Africa's first power plants and fund the 59 MWp expansion of the Mailo plant in Zambia. The Dutch development bank FMO is participating in the initial tranche.
Timeline
2025: Standard Bank provided $40 million in financing to Solarcentury Africa.
February 2026: Koruson 1 wind complex began operations.
November 2, 2026: Standard Bank signed the up-to-$370 million financing agreement.
2030: Solarcentury Africa targets a 500 MW owned renewable portfolio.
Market Landscape
The deal extends Standard Bank's track record of financing large renewable projects, following its backing of the 420 MW Koruson 1 wind complex and the 506 MW combined Khauta solar projects in South Africa. Standard Bank mobilized roughly $2.4 billion for renewable energy across its markets in 2025.
For electricity consumers served by merchant solar plants, expanded capacity can add supply to regional markets, though the source does not state specific price effects. Businesses and investors tracking renewable financing can see that large African solar projects are attracting bank capital at scale.
The takeaway
Commercial bank financing is increasingly bridging the gap for merchant renewable projects that face market price risk rather than fixed offtake contracts. Watch whether the remaining tranches of this agreement are drawn down as the Mailo expansion proceeds.
Further reading
For more on how lenders are funding projects like this, explore Financial Services coverage.
Source note: This article includes information reported by Ecofin Agency.
