Globeleq, a leading power company, has successfully completed a $71 million senior debt restructuring for its 31MW Soutpan solar farm located in Limpopo Province, South Africa. The restructuring, led by Standard Bank Limited in partnership with the project’s original lender, Vantage Green X Fund, aims to lower the cost of debt for the project, ultimately reducing wholesale electricity prices from the plant.
This refinancing not only creates a more efficient capital structure, but also allows for the release of funds for shareholders to reinvest in the power sector and accelerates equity distributions to Soutpan’s community and BEE shareholders.
Soutpan, one of the first solar power plants built under South Africa’s Renewable Energy Independent Power Producer Procurement program, began operations in 2014. In 2019, Globeleq acquired a majority interest in the plant and has since managed the full scope of operations and maintenance, implementing a plan to enhance performance, efficiency, and safety at the plant.
Globeleq CEO Mike Scholey said: “The successful Soutpan restructuring is an important transaction which will save Eskom more than 160m rand 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.”
