Africa fund backs 40MW solar farm in Kenya
- Alten expects to bring PV project online in the spring
The Emerging Africa Infrastructure Fund (EAIF) has offered a $35m financing to the 40MW Kesses solar project in Kenya.
EAIF said the initial part of the debt, which will certainly run over a 15-year term, was released in late December.
The center is being built by Alten Kenya Solarfarms BV near Eldoret in the Rift Valley area of Kenya.
Alten will market all its output to Kenya Power as well as Lighting Company (KPLC), the national power utility, on a 20-year take-or-pay Power Purchase Agreement.
Building and construction of the plant has actually already commenced and is expected to be finished in Spring this year.
Sine Zulu, an Investment Specialist at EAIF's investment managers, Ninety One, said: "The Kesses plant brings multiple benefits to Kenya's economic advancement. It will also play an integral part in fighting climate change and also strengthening Kenya's ability to recoup from Covid-19.
" EAIF is currently established as a loan provider of choice for renewable resource companies purchasing Africa."
Standard Bank, which is also a long-established lending institution to EAIF, was the mandated lead arranger of the project financing to Alten.
Standard Bank is supplying$41m in debt consisting of a term finance, VAT as well as Debt Service Reserve facility.
Standard Bank is acting with its CIB as well as Stanbic Bank Kenya Limited departments.
