RMB invests R10bn in financing renewable energy projects

 Rand Merchant Bank (RMB) announced yesterday that it has committed  in excess of R10bn from its own balance sheet to closing five of the largest renewable energy projects in Round One of the Department of Energy’s (DoE) Renewable Energy Independent Power Producer Procurement Programme.

Together these projects, located in the Western Cape, Northern Cape and Free State, are worth more than R18bn and include wind, concentrated solar and solar photovoltaic technologies.  RMB said acted as the mandated lead arranger for each of the projects, achieving financial close in November 2012.  These projects will add approximately 400MW of capacity to the South Africa grid, starting in 2014.

 

RMB said it used a combination of financing instruments for these projects, including senior debt, inflation-linked debt, mezzanine debt and preference shares.  “We designed individual bespoke funding solutions for each of our clients to suit their particular requirements, which enabled them to bid on a competitive basis,” says Rand Merchant Bank senior transactor Dario Musso.  “We are proud to have been a part of the DOE’s world-leading renewable energy initiative and look forward to maintaining our leading role in future rounds”.

RMB said it also co-ordinated and implemented the Foreign Exchange and Interest Rate hedging programmes for the projects, and provided comprehensive transactional banking services.

RMB added that it is acting as lead arranger on several projects which have reached the preferred bidders stage in Round Two and are due to close in March 2013.  RMB is also supporting a number of Round Three projects, which are due for bid submission in May 2013.

RMB said it also co-ordinated and implemented the Foreign Exchange and Interest Rate hedging programmes for the projects, and provided comprehensive transactional banking services.

RMB added that it is acting as lead arranger on several projects which have reached the preferred bidders stage in Round Two and are due to close in March 2013.  RMB is also supporting a number of Round Three projects, which are due for bid submission in May 2013.

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