26th March 2026: UGEAP provides USD 13 million facility to Sterling Bank to promote renewable energy lending in Nigeria

The Universal Green Energy Access Programme (“UGEAP”), a fund managed by Cygnum Capital, is pleased to announce a USD 13 million loan to Sterling Bank Limited (“Sterling”), a leading Nigerian commercial bank, to support lending to Distributed Renewable Energy (“DRE”) enterprises in Nigeria.

The facility will enable Sterling to expand its lending to a diversified portfolio of DRE projects, including solar home systems, mini-grids, commercial and industrial (“C&I”), and on-grid installations. By on-lending, the investment deepens Sterling’s renewable energy investments and encourages the broader deployment of clean energy solutions in Nigeria.

This transaction represents UGEAP’s first investment in a financial institution, providing an efficient channel to scale impact through an established local financial institution. Sterling Bank has demonstrated a strong commitment to the renewable energy sector through its HEART (Health, Education, Agriculture, Renewable Energy, and Transport) strategy.  

The investment contributes to expanding access to reliable and affordable electricity, reducing reliance on diesel generation, and supporting Nigeria’s energy transition. It also strengthens local financial markets by increasing the availability of climate-aligned lending.

According to Dele Faseemo, Group Executive, Corporate and Investment Banking at Sterling Bank, “This partnership reflects our long-term vision to be a leading financier of Nigeria’s energy transition. It aligns with our HEART strategy and underscores our commitment to sustainable financing and inclusive growth. By scaling investment in distributed renewable energy, we are not only addressing immediate power challenges but also laying the foundation for a more resilient and sustainable energy future.”

Meghana Duggirala, Fund Co-Lead of UGEAP, commented “UGEAP is pleased to partner with Sterling Bank on this transaction, reflecting a shared commitment to delivering measurable development impact alongside strong financial discipline. As UGEAP’s first transaction under Cygnum Capital’s management, this marks an important milestone for the fund. The financing from UGEAP will strengthen the Bank’s capacity to scale its DRE lending activities, bridging a critical financing gap for smaller developers and projects that are often underserved by traditional funding sources.”

About Universal Green Energy Access Program (UGEAP)

UGEAP is designed to accelerate access to DRE across Africa through innovative and flexible debt financing solutions. UGEAP targets C&I renewable energy projects, mini-grids, on-grid, and off-grid installations, with a strong focus on climate impact, sustainability, and financial inclusion. UGEAP provides capital either directly as a co-lender alongside commercial financiers or indirectly through local financial institutions. UGEAP’s target markets are Benin, Ethiopia, Kenya, Namibia, Nigeria, Tanzania and Uganda.  

About Sterling Bank Limited

Sterling Bank Limited is a full-service national commercial bank in Nigeria and a member of Sterling Financial Holdings Group. With a heritage of more than 60 years, the bank has evolved from Nigeria’s pre-eminent investment banking institution to a trusted provider of retail, commercial, and corporate banking services.

Sterling is a forward-thinking financial institution committed to transforming lives through innovative solutions, exceptional service, unwavering integrity, and a steadfast focus on its HEART strategy, which centers on Health, Education, Agriculture, Renewable Energy, and Transportation. As pioneers in digital banking and financial inclusion, Sterling continues to lead by example, showing how purpose-driven leadership can deliver transformative outcomes for individuals, businesses, and society at large.

About Cygnum Capital

Cygnum Capital Group is an investment bank and asset manager operating across frontier and emerging markets. Formerly known as Lion’s Head, which was founded in 2008, Cygnum Capital is now a global provider of tailored and innovative financial solutions to meet its clients’ diverse needs. Cygnum Capital uses long-term relationships, networks and local market understanding to deliver a best-in-class service. With offices in London, Nairobi, Lagos, Dubai, Frankfurt and Amsterdam, Cygnum Capital’s dynamic team of 100 finance professionals provide deep sectoral expertise, a broad product offering, an asset management platform and the ability to leverage synergies between our corporate finance, asset management and advisory activities.

Cygnum Capital manages seven pioneering funds: six debt funds including: (i) the African Local Currency Bond Fund (“ALCBF”), a ground-breaking investment vehicle established to support local currency capital markets, (ii) Off-Grid Energy Access Fund (“OGEF”) which supports companies in off grid energy such as SHS and small- medium mini-grids, (iii) Facility for Energy Inclusion (“FEI”) which support companies that provide a range of renewable energy solutions such as medium - large mini- grids, C&I and IPP with a maximum capacity of 25 MW, (iv) AfricaGoGreen (“AGG”) Fund which supports companies combating climate change by reducing the use of fossil fuels through new technologies that increase energy efficiency, (v) the Universal Green Energy Access Programme (“UGEAP”), a co-investment and on-lending vehicle targeting distributed renewable energy investments in Africa, (vi) the Africa Agriculture Trade and Investment Fund (“AATIF”), and (vii) a VC private equity fund E3 Low Carbon Economy Fund for Africa (“E3 LCEF”) which invests in climate-smart services, digital connectivity & applications and low-carbon productivity enablers. Cygnum Capital Asset Management has over USD 1.4 billion of assets under management with investments across 34 African countries.