Globeleq Completes $71 million Restructuring of Soutpan Solar Plant Financing
LONDON/CAPE TOWN – 23 January 2023: Globeleq, the leading independent power company in Africa, has completed a $71 million (ZAR1.2 billion) senior debt restructuring of its 31 MW Soutpan Solar Power (Pty) Ltd (“Soutpan”) plant in Limpopo Province, one of the first solar power plants built under South Africa’s Renewable Energy Independent Power Producer Procurement programme. By lowering the cost of debt for the project, the refinancing allows for a significant reduction in wholesale electricity prices from the plant, creates a more efficient capital structure enabling release of funds for shareholders to reinvest in the power sector and accelerates equity distributions to Soutpan’s community and BEE shareholders.
Standard Bank Limited led the restructuring of the debt, alongside the project’s original lender, Vantage Green X Fund (RF) Pty Limited. Soutpan started operations in 2014 and Globeleq acquired a majority interest in the plant in 2019. Since then, Globeleq has managed the full scope of operations and maintenance and has implemented a plan to enhance performance, efficiency, and safety at the plant.
Globeleq’s CEO, Mike Scholey said: “The successful Soutpan restructuring is an important transaction which will save Eskom more than ZAR160 million over the remaining ten years of the agreement. This is the fourth renewable project that Globeleq has restructured under the Department of Mineral Resources and Energy’s IPP Office Refinancing Protocol and further demonstrates our commitment to supporting initiatives that benefit energy users and encourage investment while load shedding continues.”
“Standard Bank is delighted to support Globeleq and underwrite Soutpan in the restructure of its debt which has allowed for a tariff saving to Eskom and ultimately the South African consumer. Standard Bank has been involved with Soutpan as Mandated Lead Arranger and Hedge Provider since 2012 when Soutpan started construction. Our longstanding partnership and journey together demonstrates Standard Bank’s commitment to the renewable sector and our client relationships” as said by Sherrill Byrne, Executive Energy, and Infrastructure Finance.
Vantage GreenX’s MD, Alastair Campbell said: “Vantage GreenX has been a lender to the Soutpan project since 2013 and it has been pleased to play a meaningful role in the evolution of the Sustainable Energy market in South Africa. The restructuring of the finance on this project is indicative of a market that has matured, and which is well positioned to play an important and meaningful role in the quest to solve South Africa’s ongoing energy crisis”
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Globeleq is the leading developer, owner and operator of electricity generation in Africa. Since 2002, its experienced team of professionals have built a diverse portfolio of independent power plants, generating more than 1,500MW in 14 locations across 6 countries, with a further 722 MW in construction and more than 2,000 MW of power projects in development. More details on www.globeleq.com.
About Standard Bank Group Limited
Standard Bank Group is the largest African bank by assets, operating in 20 African countries and 5 global financial centres. Headquartered in Johannesburg, South Africa, we are listed on the Johannesburg Stock Exchange, with share code SBK, and the Namibian Stock Exchange, share code SNB.
Standard Bank has a 160-year history in South Africa and started building a franchise outside southern Africa in the early 1990s.
Our strategic position, which enables us to connect Africa to other select emerging markets as well as pools of capital in developed markets, and our balanced portfolio of businesses, provide significant opportunities for growth.
The group has over 46 000 employees excluding Liberty, more than 1,143 branches and over 6,600 ATMs on the African continent, which enable it to deliver a complete range of services across personal and business banking, corporate and investment banking and wealth management.
Standard Bank Group Limited (SBG or group) headline earnings for the twelve months to 31 December 2021 (FY21) were R25.0 billion, return on equity (ROE) was 13.5%. Standard Bank’s market capitalisation as of 31 December 2021 was R228 billion (USD14 billion).
The group’s largest shareholder is the Industrial and Commercial Bank of China (ICBC), the world’s largest bank, with a 20.1% shareholding. In addition, Standard Bank Group and ICBC share a strategic partnership that facilitates trade and deal flow between Africa, China and select emerging markets.
For further information, go to http://www.standardbank.com
About Vantage Green X Limited
Vantage GreenX is a sustainable energy debt fund with a Southern African focus. The fund was formed in 2013 with the creation of Vantage GreenX’s Note 1, a R2.2bn debt fund with a focus on the South African IPP procurement processes.
Since the creation of Note 1, a further two funds have been created bringing the total assets under management to in excess of R8bn. The mandate of the fund has been widened to include bilateral or private energy IPPs and the intention is for this this funding model to continue being replicated for as long as there is a funding need in the region.
Vantage GreenX forms part of the Vantage Capital group which is one of Africa’s pre-eminent mezzanine funding providers. Created in 2001, the group has invested in 30 mezzanine finance projects across the continent.
For further information, go to https://www.vantagecapital.co.za