Mozambique: Coal Power Developer Ncondezi Energy Sells Renewable Energy Subsidiary to Repay Bridge Loan

  • Ncondezi Energy Limited has announced that Ncondezi Green Power Holding Limited (“NGP”), the company’s wholly owned renewable energy subsidiary, has entered into a sale and purchase agreement (“SPA”) with Green Energy SPV PLC (“Green Energy”) for the sale of  Mozambique Green Power (“MGP”) which owns the group’s maiden Commercial and Industrial (“C&I”) 400kWP solar and 912 kWh battery storage project in Mozambique.
  • The Acquisition price of US$1.3 million has been paid in cash.

Green Energy is a newly formed company controlled by Ncondezi Energy Non-Executive Director, Scott Fletcher. Proceeds of the sale are to be used to repay the bridge loan which becomes due on 7 December and the remainder of the proposed Consideration, estimated at $650,000 to be used for general working capital purposes.

Ncondezi Non-Executive Director Aman Sachdeva said: “Following the strategic review we launched in June and in an increasingly challenging post COP26 environment, selling the C&I subsidiary allows the Company to fully focus on progressing the Company’s main project, the 300MW coal fired Ncondezi Project with our Strategic Partner, China Machinery Engineering Corp and we are working on finalising the tariff as soon as possible.”

Related news: China pleadges to stop funding coal projects abroad

“Following completion of the strategic review process, Green Energy’s offer provides a premium valuation with an easy to execute structure. It also provides a non-dilutive solution which ensures the Bridge Loan will be repaid on time and provides additional working capital to the Company as it focuses on the Ncondezi Project,’ concluded Sachdeva.

Author: Bryan Groenendaal

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