Globeleq, an independent solar power producer, announced the completion of a $37 million senior debt restructuring for 11 MW of Aries Solar and 11 MW of Konkoonsies solar projects in the Northern Cape of South Africa.
By lowering the cost of debt for the projects, the restructuring led by Standard Bank Limited allows for a significant reduction in wholesale electricity prices from the projects.
Both solar projects commenced operations in 2014 and are part of South Africa’s Renewable Energy Independent Power Producer Procurement Programme. Globeleq acquired a majority interest in the plants in 2019.
Mike Scholey, Globeleq’s CEO, said: “Restructuring the financing terms of these projects continues to be of significant benefit to Eskom and to South African consumers. We have reduced the cost of power at these two plants by around ZAR129 million over the remaining ten years of the power purchase agreement. Overall, Globeleq has now restructured six of our eight plants in South Africa using the Department of Mineral Resources and Energy’s IPP Office Refinancing Protocol. These efforts demonstrate our desire to be a long-term producer of cost-effective renewable power in South Africa to benefit energy users and encourage investment in the renewable energy sector.”
Sherrill Byrne, Executive Energy and Infrastructure Finance of Standard Bank commented: “We are pleased to have partnered with Globeleq again and taken over the debt financing of the Aries and Konkoonsies Solar Projects, allowing for cost savings to be passed through to Eskom and ultimately to the end consumers. Standard Bank is committed to being a leading player in the energy sector in South Africa.”
According to Mercom’s recently released Q4 and Annual Funding and M&A report, large-scale project funding deals announced in 2023 came to $44.5 billion in 229 deals, of which 196 were disclosed.
Infiniti Energy, a solar project developer and independent power producer, recently announced the closure of an $83 million structured finance facility with Fifth Third Bank, who acted as the administrative agent, to support a portfolio totaling 21 MW commercial solar projects.