Nedbank group investment banking division Nedbank Capital on Thursday reported that it had underwritten debt funding for seven of the 11 debt-funded projects included in the 17 projects awarded in the third window of the Renewable Energy Independent Power Producer Procurement Programme (REIPPPP 3).
The R6.8-billion debt funding provided by Nedbank Capital to projects totalling R26.2-billion of the R44-billion in projects as advised by the Minister of Energy, was the highest proportion of debt funding by a commercial bank in the REIPPPP 3.
“In addition, Nedbank Capital has also underwritten black economic-empowerment funding to six of the equity-funded transactions,” Nedbank Capital infrastructure, energy and telecommunications head Mike Peo said.
The projects funded by Nedbank Capital included two solar photovoltaic, two wind and two concentrated solar power projects, as well as one landfill gas project.
“To date, Nedbank Capital has funded projects comprising 875 MW, or 36%, of the total allocated capacity awarded in windows one and two of the REIPPPP. Should all window-three projects achieve financial close, Nedbank Capital will have funded projects totalling 1 486 MW, or 38%, of the total allocated capacity in all the bidding windows,” Peo noted.
While the projects in the latest bidding round were required to achieve financial close by July 31, he was confident that all the projects would achieve financial close by virtue of the quality of the project developers, the sponsors and equity providers, as well as the selection of equipment suppliers, engineering procurement and construction contractors, and operators.
“In line with the Nedbank Group commitment to being a leader in the financing of sustainable energy solutions, Nedbank Capital will continue to support the REIPPPP,” Peo concluded.
To date, Nedbank Capital was mandated to act as the lead arranger of 22 of the 64 projects that had already been awarded.