Funding Archives - Market Intelligence Portal

AMEA Power to develop 25MW solar PV plant in Djibouti

August 28, 2023 by

Dubai-based renewable energy developer AMEA Power has signed a 25-year power purchase agreement (PPA) with the government of Djibouti for a 25 megawatt (MW) solar PV project coupled with battery storage in the Grand Bara, south of Djibouti city.

The solar project, the first solar independent power project (IPP) in Djibouti, is being fully developed under a Build-Own-Operate and Transfer (BOOT) model and will generate 55GWh of clean energy per year, the company said in a statement.

The Sovereign Fund of Djibouti will join the project before the financial close as a minority shareholder. The off-taker will be state-owned Electricité de Djibouti.

As part of its strategic plan, the Djibouti government aims to reduce CO2 emissions by around 40 percent by 2030.

AMEA Power has a clean energy pipeline of over six gigawatts (GW) across 20 countries.

ElectriFI finances the electrification of 3,000 households using solar kits

August 22, 2023 by

In Burundi, the Electrification Financing Initiative (EDFI ElectriFI) is providing a million dollars in funding to the American company Amped Innovation. The aim is to electrify 3,000 households in rural areas using solar home systems. Good news for Amped Innovation. As part of its operations in Burundi, the company based in San Mateo, California, in the United States of America, has received funding of one million dollars. The funds come from the country window of the Electrification Financing Initiative (EDFI ElectriFI) for Burundi.

This East African country “has been neglected by the commercial investment community for many years, mainly due to large deficits and foreign exchange shortages. Yet the electricity needs of the local population are immense. Against this backdrop, we are delighted to have found in Amped a commercial partner willing to bridge this energy gap,” says Lionel Dieu, Senior Investment Officer at EDFI ElectriFI.

According to him, the aim of this initiative is to electrify 3,000 rural households in Burundi. Amped Innovation distributes solar home systems and other household appliances powered by photovoltaic solar energy. The company, co-led by Andi Kleissner and Kurt Kuhlmann, will use the EDFI ElectriFi funding to “actively invest in resources in Burundi. Amped will explore new business development opportunities, enhancing the potential for sustainable energy growth in the country,” says EDFI.

Amped’s investments will improve the level of access to electricity in Burundi. The country is one of the worst performers in terms of electrification in Africa, with a rate of only 10% according to the World Bank’s 2021 report. An average of 35 MW of Burundi’s total installed capacity of 82 MW was operational in 2019 for a population of nearly 13 million.

Baobab+ Borrows $1.3m from Oikocredit to Boost Household Access to Technology, Solar Energy in Rural Côte d’Ivoire

August 21, 2023 by

The Ivorian unit of the France-based renewable energy company Baobab+ recently borrowed EUR 1.2 million (USD 1.3 million) from Dutch cooperative investor Oikocredit. Baobab+ is active in six African countries, primarily selling solar panel kits, solar lamps and touchscreen tablets. The firm sells many of these items on a pay-as-you-go basis, whereby users’ devices can be turned on or off remotely depending on the timing of customer payments. Baobab+ provides the pay-as-you-go option via Angaza, a firm with offices in Kenya and the US. The purpose of the loan from Oikocredit is to expand the work of Baobab+ in rural and semi-urban parts of Côte d’Ivoire.

Baobab+ is a subsidiary of the Baobab Group, a France-based corporation whose other subsidiaries are microfinance institutions (MFIs) active in China and eight African countries. Baobab+ sells its products – a total of 250,000 since its founding in 2015 – through many of the Baobab Group’s MFI subsidiaries. As of 2022, Baobab Group had 4,300 employees serving 457,000 customers with EUR 335 million (USD 366 million) in deposits held. During that year, the group disbursed loans totaling EUR 1.0 billion (USD 1.1 billion) with an average loan amount of EUR 4,570 (USD 5,000).

AAAS Energy, Tati Solar 1 B.V, raises over $1.25M USD

August 17, 2023 by

AAAS Energy through Tati Solar 1 B.V. raises over $1.25M USD against 8% interest, part of a funding round for a 105 MW solar project.

GuarantCo and Societe Generale will provide an up to XOF 37.8 billion (c. USD 63 million) financing solution to finance Spiro’s fleet of electric motorbikes in Benin and Togo

August 16, 2023 by

GuarantCo, part of the Private Infrastructure Development Group (PIDG), in partnership with Societe Generale will provide an up to XOF 37.8 billion (c. USD 63 million) financing solution, with a first tranche of XOF 21 billion (c. USD 35 million), to support the financing of Spiro’s fleet of electric motorbikes as well as the associated batteries and swap stations in Benin and Togo. The funding comprises a 70 percent partial credit guarantee from GuarantCo and a borrowing base facility provided by Societe Generale. Through this funding, the financiers will take a significant stride towards supporting e-mobility in Africa.

E-mobility in Benin and Togo, and Africa in general, is still in its nascency but will offer huge benefits once the electric motorbike model has scaled up. This transaction will directly contribute to addressing the challenge of providing affordable, clean vehicles in Benin and Togo, and is expected to transform the market through wider demonstration and replication effects. The Spiro project is specifically targeted at motorbike taxi drivers of which there are an estimated 400,000 in Benin and Togo.

Spiro is looking to deploy at least 15,700 clean electric motorbikes with 31,400 electric batteries and more than 1,000 swap stations in addition to their existing operational fleet of 5,706 vehicles and around 130 swap stations. Through the project, up to 100 jobs will be created for the installation of charging stations and technical support, while an additional 3,710 operations and maintenance jobs are expected. Spiro is aiming to have a minimum of 30 percent women in their workforce including engineers, managers and technicians whilst providing technical and leadership programmes to enhance their skills. It is estimated to deliver a 96kt C02 equivalent reduction of greenhouse gas emissions so urban communities in particular will benefit from reduced air pollution as internal combustion engines are replaced.

The transaction will make a direct contribution to Sustainability Development Goal (SDG) 11.6: Reduce the environmental impact on cities and SDG 13: Limit and adapt to climate change.

Layth Al-Falaki, CEO of GuarantCo, said:

“We are delighted to have signed this transaction with Spiro, and to have further cemented our strong relationship with Societe Generale. This landmark electric mobility project will contribute to improving the environment to the benefit of the people of Benin and Togo and will directly contribute to addressing the challenge of providing affordable, clean vehicles in the two countries. In addition, it will help transform the market through wider demonstration and replication effects.”

Mohamed Fadel Kane, MD Structured Finance of Societe Generale Group, said:

“Consistent with our “raison d’être” at Societe Generale—to co-create with our clients a more sustainable and prosperous future by delivering innovative, responsible financial solutions—we are proud to propel the evolution of sustainable mobility in Africa. With the successful backing of Spiro’s significant initiative, we are demonstrating our steadfast commitment to shaping the future of finance in alignment with global sustainability goals. These clean electric motorcycles are not just a stride towards reducing our environmental impact; they promise to stimulate economic growth in Togo and Benin and to fulfil the pressing mobility needs of Africa. The project’s financing was significantly strengthened by our partner GuarantCo. This successful partnership testifies to our ability to forge robust alliance, reinforcing our commitment to deliver sustainable, high-impact transformation”.

Jules Samain, CEO of Spiro, said:

“This pivotal partnership with Societe Generale and GuarantCo has accelerated our mission to tackle climate change, enhance public health, and empower Africa’s economies. By expanding our e-mobility footprint in Benin and Togo, we’re making significant strides in reducing greenhouse gases. This isn’t just about electric motorbikes; it is about envisioning a sustainable future for Africa and stimulating socio-economic growth through job creation and gender-inclusive employment. This alliance brings us a step closer to our goals, signalling transformative changes for Benin, Togo and beyond.”

Abdoul Aziz Ba CEO of ATIF, said:

“This transaction is an important milestone for Spiro and as a sponsor and main shareholder of Spiro, we strive to channel global private capital and expertise to companies operating in Africa. It is very important also to provide growth capital to our investment portfolios via innovative structures with local and international financial investors. As such the financing close with Societe Generale and GuarantCo is a great partnership to promote clean energy and sustainable growth in Africa.”

Harmony Demonstrates ESG in action as it concluded ESG-linked loans and starts construction of three 10 MW solar PV Plants

June 2, 2022 by

Harmony Gold Mining Company Limited (“Harmony” and/or “the Company”) is pleased to announce that it has concluded a new syndicated multi-tranche, multi-currency, loan facility, aimed at sustainable development, as well as a power purchase agreement (“PPA”) facilitating Phase 1 (30 megawatts “MW”) of its renewable solar photovoltaic (“PV”) energy initiative.

The first phase of Harmony’s renewable energy journey consists of a 30MW solar energy plant in the Free State. In Phase 2, the Company will be building an additional 137MW of renewable energy at our various longer-life mines while Phase 3 is in planning stage and progressing as anticipated. Harmony expects Phase 2 of its renewable energy project to deliver over R500 million per annum in electricity cost savings once it reaches full production in FY25.

“The ESG-linked financial transactions that we have concluded, alongside the construction of the solar energy plants, are a watershed moment for Harmony and our host communities. Not only will these transactions help us to deliver on our environmental and social obligations and undertakings, but they will also de-risk the business and deliver many socio-economic benefits. ‘Mining with purpose’ is ensuring that our investors and other stakeholders continue to derive value and positive returns in a global climate of energy uncertainty,” Steenkamp added.

The conclusion of the following transactions demonstrate Harmony’s commitment to sustainable development – in particular decarbonisation:

1 Phase 1 of the solar PV power purchase agreement

In Phase 1 of Harmony’s decarbonisation strategy, the Company has established an independent power producer (“IPP”) for the construction of the three PV plants. These plants will have a total installed capacity of 30MW and will deliver more than 68 gigawatt hours (“GWh”) of clean power to Harmony’s Free State operations, mitigating 65 000 tonnes of carbon dioxide emissions in their first 12 months of operation. 1.3 terawatt hours (“TWh”) of clean energy is expected to be delivered over their 20-year lifespan.

The solar plant projects were jointly developed by Harmony, Energy Group (a specialist advisor and investor in industrial clean energy projects in Southern Africa), and BBEnergy (a South African engineering company that specialises in solving complex engineering problems in the energy and water fields).

The project was funded by a project finance debt solution from Rand Merchant Bank, a division of First Rand Bank Limited, and with the support of African Clean Energy Developments (ACED), equity-funded by African Infrastructure Investment Managers and Mahlako Energy Fund.

The plants rank amongst the biggest solar PV plants for private offtake in South Africa to date and first energy is expected to flow from the plants in March 2023.

2 Syndicated multi-tranche, multi-currency, loan facility of US$400 million and R4 billion

Harmony’s goal is to be net carbon zero by 2045. Phase 1 and 2 of Harmony’s renewable energy programme are key interventions, supported by science-based targets, as the Company journeys towards this ambition.

The syndication was led by ABSA Bank Limited (acting through its Corporate and Investment Banking Division) (ABSA), and Nedbank Limited (acting through its Corporate and Investment Banking Division) (Nedbank) and was well supported by a variety of local and international banks and financial institutions (jointly referred to as “the lending group”).

The syndicated, multi-currency, multi-tranche loan facilities include the following components:

a Green Loan (“Green Loan”): a R1.5 billion term loan ring-fenced for renewable energy projects as part of Phase 2 of Harmony’s renewable energy roll out; and
sustainability-linked loans consisting of:
- a R2.5 billion revolving credit facility
- a US$300 million revolving credit facility
- a US$100 million term loan

The Green Loan of R1.5 billion is designated to fund Phase 2 of Harmony’s solar PV strategy (Phase 2 targets up to 137MW of peak generation capacity). The cash flow profile of this loan has been tailored to closely match the expected cash flow of the solar PV build, followed by the expected savings in energy costs for Harmony’s South African mining operations. Phase 2 of the solar PV project is currently in the feasibility stage and we are working on obtaining the necessary permits and licenses.

The three sustainability-linked loans align with the Company’s ESG and sustainable development targets. As part of the transaction, Harmony and the lending group have agreed on the following progressive sustainability targets, or key performance indicators (“KPIs”), over the next three financial years:

KPI 1 – GHG² emissions: Reduction of Scope 1 and 2 emissions from an FY21³ baseline of 4 896 000 tons to 4 074 000 tons by FY25
KPI 2 – Renewable energy mix: Targets a 20% renewable energy mix by FY25 from a 0% baseline in FY21
KPI 3 – Potable water consumption: Target a reduction to 19 436 mega litres (“Ml”) of potable water consumption by FY25 from a baseline of 21 083 Ml in FY21

An independent service provider applying the Sustainability Linked Loan Principles as issued by the Loan Market Association (amongst others), has independently verified the credibility of these targets.

Upon meeting the KPIs, Harmony will receive meaningful interest savings, while inversely similar penalties become payable if all targets are missed.

The sustainability-linked loans have an original term to maturity of 3 years, and includes extension options to that could add a further 2 years to the final maturity date.

Name	Role	Amount	Financing Instrument	Status
Harmony Gold Mining Company	EPC	–	–	Added
Energy Group	EPC	–	–	Added
BBEnergy	EPC	–	–	Added
Rand Merchant Bank	Investor	n/a	Debt	Added
African Clean Energy Developments (ACED)	Advisor	–	–	Added
Infrastructural, Developmental and Environmental Assets Managed Fund (IDEAS Fund)	Investor	n/a	Equity	Added
Mahlako Energy Fund	Investor	n/a	Equity	Added

Harmony Gold Mining Phase II: Tshepong, Eland, and Nyala

Name	Role	Amount	Financing Instrument	Status
Harmony Gold Mining Company	EPC	–	–	Added
Energy Group	EPC	–	–	Added
BBEnergy	EPC	–	–	Added
ABSA, NED Bank, a variety of local and international banks and financial institutions	Investor	R1.5 billion	Debt	Added

Organization	AMEA Power, Government of Djibouti, Sovereign Fund of Djibouti, Electricité de Djibouti
Source	Dubai’s AMEA Power to develop 25MW solar PV plant in Djibouti

Organization	Electrification Financing Initiative (EDFI ElectriFI), Amped Innovation
Source	BURUNDI: ElectriFI finances the electrification of 3,000 households using solar kits

Organization	Baobab+, Oikocredit
Source	Baobab+ Borrows $1.3m from Oikocredit to Boost Household Access to Technology, Solar Energy in Rural Côte d’Ivoire

Organization	AAAS Energy, Tati Solar 1 B.V., Etavi Renewables, DuurzaamInvesteren (Crowdinvesting B.V.)
Project	Tati Solar Project
Source	Informatiememorandum-Tati-Solar-1-B.V.pdf

Organization	Societe Generale Group, GuarantCo, Spiro
Source	GuarantCo and Societe Generale will provide an up to XOF 37.8 billion (c. USD 63 million) financing solution to finance Spiro’s fleet of electric motorbikes in Benin and Togo

AMEA Power to develop 25MW solar PV plant in Djibouti

In this article

Overview

Updates

Grand Bara Project (Project)

ElectriFI finances the electrification of 3,000 households using solar kits

In this article

Overview

Updates

Amped Innovation (Organization)

Baobab+ Borrows $1.3m from Oikocredit to Boost Household Access to Technology, Solar Energy in Rural Côte d’Ivoire

In this article

Overview

Updates

Baobab+ (Organization)

AAAS Energy, Tati Solar 1 B.V, raises over $1.25M USD

In this article

Overview

Updates

Tati Solar 1 B.V (Organization)

Etavi Renewables Mauritius Ltd.

Tati Solar Project

GuarantCo and Societe Generale will provide an up to XOF 37.8 billion (c. USD 63 million) financing solution to finance Spiro’s fleet of electric motorbikes in Benin and Togo

Layth Al-Falaki, CEO of GuarantCo, said:

Mohamed Fadel Kane, MD Structured Finance of Societe Generale Group, said:

Jules Samain, CEO of Spiro, said:

Abdoul Aziz Ba CEO of ATIF, said:

In this article

Overview

Updates

Spiro Lending Facility (Organization)

Harmony Demonstrates ESG in action as it concluded ESG-linked loans and starts construction of three 10 MW solar PV Plants

In this article

Overview

Updates

Harmony Gold Mining Phase I: Tshepong, Eland, and Nyala (Project)

Harmony Gold Mining Phase II: Tshepong, Eland, and Nyala