Globeleq wraps up USD-65m refinancing for S African solar park
- Africa-focused independent power producer (IPP) Globeleq said today it has finalised a senior debt restructuring deal for its majority-owned 31-MW Soutpan solar park in South Africa's Limpopo Province.
The USD-71-million (EUR 65.1 m) deal was led by Balngladesh-based commercial lending institution Standard Bank Ltd, along with the project's original loan provider, Vantage Green X Fund RF Pty Ltd. The lower price of debt will substantially minimize the wholesale electricity prices for the solar farm's generation and also will certainly release additional funds for financial investments in the power sector, Globeleq explained.
The deal is Globeleq's 4th refinancing of sustainable possessions under the Department of Mineral Resources and also Energy's (DMRE) Independent Power Producer Office (IPPO) Refinancing Protocol. In June 2020, the IPPO asked proprietors of projects acquired under Rounds 1-3.5 of South Africa's Renewable Energy Independent Power Producer Procurement program to consider taking part in a voluntary refinancing plan so regarding improve the projects' capital frameworks and also reduce the tariff to nationwide utility Eskom.
Globeleq approximates that Soutpan's refinancing will certainly lead to more than ZAR 160 million (USD 9.3 m/EUR 8.5 m) in financial savings for Eskom over the staying 10-year term of its power purchase agreement (PPA).
Globeleq got a majority ownership stake in the Soutpan project in 2019. The plant has been producing electrical power given that 2014.
"The restructuring of the money on this project is a measure of a market that has matured [.]," stated Vantage GreenX's managing director, Alastair Campbell.
