DEALS Enabling the Just Energy Transition through captive power generation Absa | Corporate and Investment Banking > Insights and Events > Enabling the Just Energy Transition through captive power generation SHARE As a leading Pan-African bank, Absa continues to prioritise financing of renewable energy projects, helping our clients transition to a low-carbon economy and achieve their sustainability goals. Our innovative investments in the renewable sector demonstrate our commitment to shaping Africa’s growth and sustainability, and the development of its people. We are proud to have provided financing and corporate banking services to SOLA Group (‘SOLA’) for their third utility-scale renewable energy captive power project. Absa CIB acted as a Mandated Lead Arranger, Lender, Account Bank and Hedge Provider in the recently concluded renewable energy project to finance a 100MW Solar photovoltaic (PV) power plant located in the North-West Province, South Africa, at an estimated project cost of approximately R2.5bn. SOLA is a 100% South African vertically integrated Independent Power Producer (IPP) founded in 2008. They have developed and operated competitive renewable energy projects across various technologies including utility-scale and C&I solar PV, micro-grid and Battery Energy Storage Systems in South Africa. The power generated by the power plant will be supplied to African Rainbow Minerals Platinum (‘ARM Platinum’) under a 20-year power purchase agreement (‘PPA’). Once operational, the project will be able to supply electricity through a wheeling arrangement with Eskom to three of their mining sites located in Limpopo. This will account for about a third of the division’s energy requirement. This private offtake agreement will reduce electricity costs for ARM Platinum whilst simultaneously reducing its carbon footprint, resulting in economic, social and environmental gains. Contact: Xoli Nene Or Shaun Moodley https://cib.absa.africa/wp-content/uploads/2020/07/file_example_MP3_700KB.mp3 Related Articles DEALS Investing in Africa’s Digital Transformation Journey We are pleased to have acted as sole Mandated Lead Arranger, Bookrunner, Facility Agent and Coordinator for ZAR 8bn of expansion capital facilities for Teraco. Read more DEALS Powering Africa’s digital future through connectivity We are pleased to have served as sole transaction coordinator in the successful financing of Vodacom's R11 billion preference share facility used to refinance the acquisition of a controlling stake in Vodafone Egypt. This strategic transaction signals a significant milestone, not only for Vodacom but also for the broader telecommunications and financial services landscape in Africa. The transaction represents the largest syndicated preference share facility closed to date in the South African market. Read more DEALS Unlocking Africa’s Trade Potential We are proud to announce our partnership with British International Investment, a collaborative effort aimed at addressing Africa's significant trade finance gap. Read more
