Globeleq Closes $362m Refinancing For 3 Projects In South Africa

Globeleq says that it has completed the debt refinancing of three clean energy plants in South Africa.

The plants will have a total capacity of 238MW. Globeleq has secured a financing package of ZAR 5.2 billion ($362m).

The bank said Absa Bank will serve as the sole underwriter for the debt.

This transaction covers the 138MW Jeffreys Bay wind farm, 50MW De Aar Solar and 50MW Droogfontein Solar plants.

Globeleq intends to refinance its entire portfolio of assets in South Africa.

In June 2020, the Department of Mineral Resources and Energy’s (DMRE) Independent Power Producer Office (IPPO) Refinancing Protocol asked project owners to contracted Rounds 1-3.5 of the REIPPP to voluntarily refinance their projects.

It is expected that this would reduce the tariff charged to the national utility Eskom.

Mike Scholey, Globeleq’s CEO, stated: “Globeleq sees this transaction as enabling future secondary market debt, which in turn will stimulate new opportunities, jobs and contribute to the economic development of South Africa. We hope that other IPPs will look to do the same and reduce the cost of their power to Eskom.”

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