- Globeleq 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%.
Author: Bryan Groenendaal