Globeleq reaches financial close on South African renewable plants

Globeleq reaches financial close on South African renewable plants
Globeleq acquires renewable energy assets in South Africa (Globeleq)

United Kingdom – Globeleq, a leading developer, owner and operator of electricity generation in Africa, has finalised the acquisition in South Africa of four renewable generation plants and the asset management company from an affiliate of Brookfield Asset Management.

The acquisitions will positively boost Globeleq’s portfolio of renewable power businesses in South Africa where the company already owns, operates and manages 238MW of solar and wind projects.

Globeleq has, since 2002, and through its experienced team of professionals built a diverse portfolio of independent power plants, generating nearly 1,400 MW in 12 locations across 5 countries, with a further 2,000 MW of power projects in development.

In South Africa the company acquired solar assets which include Aries (11MW), Konkoonsies (11 MW) and Soutpan (31 MW) as well as the Klipheuwel wind farm (27 MW).

All these renewable energy projects commenced commercial operations in 2014 and have a 20-year power purchase agreement with Eskom.

“The addition of these renewable plants further establishes Globeleq’s position as a power sector leader in Africa by expanding our renewable energy footprint across the continent.  This acquisition will deliver significant value for all stakeholders, including the local community,” said Globeleq’s CEO Paul Hanrahan.

Globeleq says the transaction has strong synergy with Globeleq’s existing assets and offers an opportunity for further operational improvements as well as delivering improvements to the existing social and economic development programmes.

The transaction will also unlock additional equity investments into these assets and will foster skills development and knowledge transfer within the local industry.

Standard Bank acted as the sole mandated underwriter and arranger of the acquisition debt facility.

Commenting on the deal, Rentia van Tonder, Head of Power, CIB Standard Bank (South Africa) said, “The transaction is another step in growing a leading, sustainable African energy provider supported by a leading African bank.  Through our partnership with Globeleq, we are enabling growth on the continent, providing accessible and sustainable energy sources to the people of South Africa.”