Johannesburg (South Africa) – Fasken is proud to have advised the Lenders on the financial close of two registered 100 MW energy projects. The first two 100 MW energy projects to be registered in South Africa.
This is following the regulatory change in August 2021 to raise the licensing limit for distributed generation projects from 1 MW to 100 MW.
The Lenders included three large commercial banks in South Africa namely Absa Bank, Nedbank and Standard Bank alongside the Development Bank of South Africa who provided a total of R3.1Bn of debt for the two projects. Africa Rainbow Energy was involved in financing the project equity.
SOLA group also entered into a Joint Venture Agreement with Wilson Bayly Holmes-Ovcon (WBHO), for the design and construction of the project, where SOLA performs the engineering services and WBHO will perform the construction.
SOLA Group shared in a statement that “The project is the largest private PPA of its kind in Africa and the first batch of 100 MW projects under the new South African legislation. It took some innovative legal structuring to fit within the requirements of a typical project finance structure.”
These renewable energy facilities will supply electricity, through wheeling arrangements with State-owned utility Eskom, to five Tronox facilities in the Western Cape and KwaZulu-Natal for their own use.
The Fasken team led by Lara Bezuidenhoudt and Craig Whitley included Ashen Jugoo, Nathisha Maharaj and Michal Asoulin.
About SOLA Group
The SOLA Group is a vertically integrated Independent Power Producer and a leader in the supply of clean energy solutions to private companies in Africa. SOLA’s mission is to transform Africa through clean energy.
About Fasken
Fasken is a leading international law firm with more than 800 lawyers and 10 offices on four continents. Clients rely on us for practical and innovative legal services. We solve the most complex business and litigation challenges, providing exceptional added value. For additional information, please visit our website at fasken.com.
