The Emerging Africa Infrastructure Fund (EAIF) has provided a $35m loan to the 40MW Kesses solar project in Kenya.
EAIF said the first part of the debt, which will run over a 15-year term, was released in late December.
The facility is being built by Alten Kenya Solarfarms BV near Eldoret in the Rift Valley region of Kenya.
Alten will sell all its output to Kenya Power and Lighting Company (KPLC), the national energy utility, on a 20-year take-or-pay Power Purchase Agreement.
Construction of the plant has already commenced and is expected to be completed in Spring this year.
Sine Zulu, an Investment Specialist at EAIF’s investment managers, Ninety One, said: “The Kesses plant brings multiple benefits to Kenya’s economic development. It will also play an important part in combatting climate change and strengthening Kenya’s ability to recover from Covid-19.
“EAIF is now established as a lender of choice for renewable energy companies investing in Africa.”
Standard Bank, which is also a long-established lender to EAIF, was the mandated lead arranger of the project finance to Alten.
Standard Bank is supplying$41m in debt comprising a term loan, VAT and Debt Service Reserve facility.
Standard Bank is acting through its CIB and Stanbic Bank Kenya Limited divisions.