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Energy Finance recognises the importance of sustainable power across the African continent and the role of the private sector, in the form of independent power producers (IPPs), in powering Africa. As such, we have been funding power projects and a key participant in landmark power transactions across the continent for the past two decades. Our team of sector specialists focusing on the African power sector is responsible for initiating, executing and managing transactions, including providing:

• project finance;
• acquisition finance;
• embedded-energy finance (corporate and industrial offtake);
• letters of credits and working-capital facilities;
• structured financial products; and
• preference-share funding to support equity investments.

As part of our power sector focus, we are also committed to funding and supporting the entire value chain, from power infrastructure developers to contractors and original equipment providers.

 

The power sector in Africa is undergoing a profound transition, and is constantly evolving across regions. With this understanding and a strong mandate, Energy Finance has optimised and developed innovative funding solutions to suit the needs of this sector.

The power sector has also seen rapid growth in decentralised distributed energy generation. Through this change Energy Finance has become an agent of positive social change across the continent, promoting and achieving sustainable economic development goals by funding power projects in this space.

Nedbank's strong commitment to a just energy transition in South Africa is evident in our success in funding 42 energy projects in the South African Renewable Energy Independent Power Producers Procurement Programme (REIPPPP) to the value of more than R35 billion. Energy Finance is the market leader in REIPPPP and through its continuous involvement in the programme Nedbank has maintained its status as the leading bank in support of renewable-energy delivery.

The inclusion of the private sector through IPPs in the African power sector provides a sustainable power supply model for African governments to support their economies without a significant debt burden on the utilities and fiscus.
Advances in technology, along with the rise of energy-conscious consumers and corporates, have seen growth in IPPs holding power purchase agreements within the commercial and industrial sector. Energy Finance foresaw this development and has well-structured funding instruments to support the specific funding requirements of embedded-energy transactions.

Large portions of the population in Africa do not have access to the electrical grid, which has sparked a rise in the demand for innovative off-grid power solutions. Energy Finance is therefore committed to providing financial solutions for projects ranging from large-scale, centralised utility power generation to small-scale, off-grid power solutions and support for contractors across the power value chain.

We remain one of the largest and most experienced commercial bank financiers of IPPs and the power sector in Africa and should therefore be your first choice of financing partner.
 

Amith Singh

amiths@nedbank.co.za