- SOLA Group has announced that it has optimised the debt facilities in its corporate and industrial solar PV fund, Orionis, in a landmark and innovative collaboration with Nedbank CIB, advised by Pepper Tree Capital, Fasken, CDH and 3E.
The deal showcases an innovative portfolio-based financing approach that SOLA project finance manager James Dry says sets a new standard in renewable energy investment, with a long-term lens on the continued and sustained enhancement of renewable energy infrastructure.
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The Orionis portfolio, which supports 37MW of operating rooftop solar projects, was optimised with a first-of-its-kind debt refinancing in the South African renewable energy sector, says Dry. “The flexible debt facility allows for dynamic operational cashflow management and reduced interest costs through an optimised capital structure, all of which benefits shareholders and which holds immense potential for future portfolio scaling.”
The deal sees a total debt facility of R250-million with a further R150-million made available, and is the result of SOLA’s ongoing, successful finance and development partnership with Nedbank CIB. “Streamlining the capital structure of the fund is a clear signal to the market that SOLA is maturing in its capability to optimise assets and project portfolios,” says Dry.
SOLA Group explains that the fund has the direct knock-on effect of supplying clean and sustainable energy to a host of sectors, including breweries, pharmaceuticals, mining, data and software, food, retail and wine production, among others. “In line with our mission, the optimisation ensures that off-takers enjoy a continued clean energy supply through enhanced renewable energy infrastructure reliability. The innovations in how the finance has been structured will see improved returns to Orionis’s shareholders.”
Dry goes on to explain that the financing model is scalable with the potential for replication across SOLA Group’s renewable energy portfolios, including utility-scale projects. Orionis, established in 2019 by SOLA Group in partnership with African Infrastructure Investment Managers and Nedbank, was designed to finance and operate commercial and industrial solar PV projects across South Africa.
The optimisation plan, which was supported by grant funding from the Clean Captive Installations for Industrial Clients in Sub-Saharan Africa (CICSA) project, included simplifying the corporate and funding structures, consolidating equity instruments, and restructuring debt facilities.
“We are grateful for our ongoing and deepening partnership with Nedbank, and the other stakeholders that have supported this process, and we are excited about the expanding possibilities that are created when our business grows and matures alongside key partners” said Katherine Persson, managing director of SOLA’s IPP business, SOLA Assets.
Author: Bryan Groenendaal
