RMB structures funding for 155MW Seriti Green wind farm in Mpumalanga

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  • Seriti Green, the renewable energy subsidiary of Seriti Resources, has secured a long-term project financing solution with RMB as co-Mandated Lead Arranger that will enable the Independent Power Producer (IPP) to deliver 155MW of sustainable power through a wind farm project in Mpumalanga, with a total project cost of R4bn.

This project represents the first phase of a portfolio that will amount to approximately 1GW of renewable energy, which will not only help to address South Africa’s energy crisis but will also contribute positively toward Seriti Resources just energy transition plans. It is also one of the first renewable energy projects to be developed in the province, marking a significant step forward in the country’s sustainability journey.

Seriti Resources, as the buyer of power from this project through a long-term Power Purchase Agreement (PPA), will benefit from renewable energy with a cost-effective tariff and predictable price path. This will significantly assist in their diversification and decarbonisation efforts.

Working with all parties involved, RMB applied a first to market equity financing solution that generated enhanced shareholder returns in a structure that resulted in significant saving on the cost of capital for shareholders creating significant value for the client. The learnings from closing the deal will help to streamline the rollout of the remainder of their 745 GW for other off takers.

Author: Bryan Groenendaal


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