South African investment firm, Vantage GreenX Fund Managers has provided R2.05 billion ($144 million) in funding to a six solar and wind energy projects with a combined capacity of 433 megawatts (MW) in the country.
The cash was released through the Fund’s second renewable energy fund, known as Vantage GreenX Note II. All the projects form part of Round 4 of the South African Renewable Energy Independent Power Producer (REIPP) procurement program, an initiative that seeks to improve the country’s power output.
Vantage GreenX is part of the Vantage Capital group, which was established in 2001 and currently manages capital of just over R11 billion (over $700 million) in five distinct mezzanine debt and renewable energy debt funds. Launched in 2013, Vantage GreenX focusses specifically on sustainable energy opportunities through its Note I and Note II funds.
Vantage has offices in Johannesburg and Cape Town as well as various funds under management targets debt opportunities in a number of high-growth African countries including South Africa, Ghana, Nigeria, Cote d’Ivoire, Ethiopia, Kenya, Tanzania, Uganda, Zambia, Botswana, Egypt, Morocco and Namibia amongst others.
The GreenX funding was provided to four projects developed by BioTherm Energy and two projects developed by protection company Old Mutual Life Assurance Company South Africa Limited (OMLACSA) and renewable power company, African Clean Energy Developments Limited (ACED).
All six projects reached financial close in the last two weeks of July 2018. The four BioTherm projects are the 86MW Konkoonsies II solar PV project in South Africa’ Northern Cape region, the 45MW Aggenys solar PV project (Northern Cape), the 120MW Golden Valley wind project (Eastern Cape) and the 32MW Excelsior wind project (Western Cape).
The two OMLACSA projects are the 75MW Droogfontein II solar PV project (Northern Cape) and the 75MW Zeerust solar PV project (North West).
“It is with great pleasure that we announce that we have supported these six projects,” commented Alastair Campbell, Managing Director of Vantage GreenX.
He stated that each of the projects has strong, experienced sponsors and solid project fundamentals.
“Together, they represent a geographically diverse portfolio of assets. Despite the difficulties experienced by stakeholders in the industry over the last two years, we hope that the conclusion of this round of projects represents a watershed moment for the South African renewable energy industry and provides forward momentum to the sustainability of the domestic energy sector as a whole,” Campbell concluded.