Globeleq Completes $37 Million Restructuring Of Aries And Konkoosies Solar Plants In South Africa
Globeleq Completes $37 Million Restructuring Of Aries And Konkoosies Solar Plants In South Africa. Globeleq, the leading independent power company in Africa, announces that it has completed a US$37 million (ZAR682 million) senior debt restructuring of its 11MW Aries Solar (“Aries”) and 11MW Konkoonsies Solar (“Konkoonsies”) plants in the Northern Cape of South Africa. Globeleq previously completed debt restructuring of the Jeffreys Bay Wind Farm and the De Aar and Droogfontein solar plants in August 2021, and the Soutpan solar plant in January 2022.
By lowering the cost of debt for the projects, the restructuring – which was led by Standard Bank Limited – allows for a significant reduction in wholesale electricity prices from the plants, creates a more efficient capital structure enabling release of funds for shareholders to reinvest in the power sector and accelerates equity distributions to the Aries and Konkoonsies communities and BEE shareholders.
Both Aries and Konkoonsies commenced operations in 2014 as part of South Africa’s Renewable Energy Independent Power Producer Procurement Programme and Globeleq acquired majority interest of the plants in 2019. Since May 2021, Globeleq has managed the full scope of operations and maintenance at both plants, achieving an average availability of above 99%.
Mike Scholey, Globeleq’s CEO, said: “Restructuring the financing terms of these projects continues to be of significant benefit to Eskom and to South African consumers. We have reduced the cost of power at these two plants by around ZAR129 million over the remaining ten years of the power purchase agreement. Overall, Globeleq has now restructured six of our eight plants in South Africa using the Department of Mineral Resources and Energy’s IPP Office Refinancing Protocol. These efforts demonstrate our desire to be a long-term producer of cost-effective renewable power in South Africa to benefit energy users and encourage investment in the renewable energy sector.”
Sherrill Byrne, Executive Energy and Infrastructure Finance of Standard Bank, commented: “We are pleased to have partnered with Globeleq again and taken over the debt financing of the Aries and Konkoonsies Solar Projects allowing for cost savings to be passed through to Eskom and ultimately to the end consumers. Standard Bank is committed to being a leading player in the energy sector in South Africa.”
