News Article
South Africa powered by renewable energy is the goal
Investec Corporate and Institutional Banking, together with Nedbank Capital continue their momentum in the renewable energy space with the announced financial closure of a transaction in which a 74MW Solar PV power plant will be built in the Northern Cape. The project is one of three in which Investec and one of five in which Nedbank Capital have been involved in as mandated lead arrangers during the second round of Government's Renewable Energy Independent Power Producer Procurement's (REIPPP) programme.
The project consists of the construction and operation of a solar PV facility with a total net contracted capacity of 74MW. The facility will be constructed on a 620 hectare site 17km north-west of the town of Kathu, an area known as one of the best irradiation sites globally and will use 319 600 crystalline solar panels. The full generation capacity of the plant will be sold to Eskom under a 20 year Power Purchase Agreement (PPA).
Investec and Nedbank Capital acted as joint mandated lead arrangers, for R1.8 billion of senior debt with the primary shareholders being Acciona Energy South Africa (Pty) Ltd (51%) and Aveng Africa (29%). Commenting on Investec's relationships with the major shareholders, Robert Gecelter of Project and Infrastructure Finance said, "Acciona is a client of Investec across three continents and we are delighted to be able to support them in South Africa, especially given the strength of the consortium involved in this deal. Equally gratifying is that another one of our long-standing clients, Aveng, brings vital local experience to the project".
The project will be "˜ring-fenced' in a Special Purpose Vehicle (SPV), Windfall 59 Properties (RF) (Pty) Ltd. Along with Acciona and Aveng, the Dibeng Trust, established with a local community shareholding will acquire a 10% shareholding at financial close. Further benefiting from the transaction will be the non-profit organisation, Soul City, with a 10% shareholding. "It is gratifying for Investec to be able to serve both our local and international clients out of our regional offices while at the same time assisting to facilitate much-needed direct foreign investment into South Africa" concluded Gecelter.
Sakkie Leimecke, head of Energy Finance at Nedbank Capital added, "Together with Investec and our clients, Acciona and Aveng, we are contributing to the vision of a South Africa powered by renewable energy which through the closure of this transaction is increasingly becoming a reality, The buy-in by banks to the entire REIPP programme, and the support that they will undoubtedly continue to offer, demonstrates the understanding by the country's financial institutions that we can, together with our clients, have a profoundly positive influence on environmental sustainability."
