- Globeleq has completed a US$71 million (ZAR1.2 billion) senior debt restructuring of its 31 MW Soutpan Solar Power (Pty) Ltd (“Soutpan”) plant in Limpopo Province.
- Soutpan is one of the first solar power plants built under South Africa’s Renewable Energy Independent Power Producer Procurement programme.
- The restructuring will save Eskom, the state owned off-taker, more than ZAR160 million over the remaining ten years of the agreement.
By lowering the cost of debt for the project, the refinancing allows for a significant reduction in wholesale electricity prices from the plant, creates a more efficient capital structure enabling release of funds for shareholders to reinvest in the power sector and accelerates equity distributions to Soutpan’s community and BEE shareholders.
Standard Bank Limited led the restructuring of the debt, alongside the project’s original lender, Vantage Green X Fund (RF) Pty Limited. Soutpan started operations in 2014 and Globeleq acquired a majority interest in the plant in 2019. Since then, Globeleq has managed the full scope of operations and maintenance and has implemented a plan to enhance performance, efficiency, and safety at the plant.
Globeleq’s CEO, Mike Scholey said: “The successful Soutpan restructuring is an important transaction which will save Eskom more than ZAR160 million over the remaining ten years of the agreement. This is the fourth renewable project that Globeleq has restructured under the Department of Mineral Resources and Energy’s IPP Office Refinancing Protocol and further demonstrates our commitment to supporting initiatives that benefit energy users and encourage investment while load shedding continues.
Author: Bryan Groenendaal
