The greenest bank in Africa has done it again. Standard Bank Group has arranged South Africa’s first renewable energy bond for a CPV project, amounting to over $110 million. The 16-year solar financing bond was raised for French renewable energy firm Soitec in response to the landmark PPA it struck for the electricity generated at its Touwsrivier CPV plant in November.
The bond will set a standard for renewable energy funding, forcing projects to be at least triple B rated. It is not only the largest but also the longest-dated bond, 16-years, in South Africa, outside of issues by South Africa’s "big four" banks themselves. It is also the first ever publicly-listed project bond issued to finance a solar power plant based on CPV technology.
Alexi Contogiannis, of Standard Bank’s Debt Primary Markets unit, says: "This is truly a landmark deal both for South Africa and Standard Bank Group. The size of the issue and level of interest from a broad range of local investors is a clear indication of the substantial appetite and viability of clean energy projects in South Africa."
A consortium of Standard Bank, Trident Capital, Deloitte, and Webber Wentzel Attorneys advised Soitec throughout the transaction, with Standard Bank acting as lead manager, book runner, and debt sponsor for the offering.
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