Globeleq has completed a $71m senior debt restructuring of its 31MW Soutpan solar farm in Limpopo Province.
Lowering the cost of debt for the project means the refinancing can reduce 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.
Soutpan is one of the first solar power plants built under South Africa’s Renewable Energy Independent Power Producer Procurement programme.
It 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 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.”