AIIM consortium achieves financial close on 89MW Castle Wind Farm for Sibanye-Stillwater
An African Infrastructure Investment Managers (AIIM) consortium has reached financial close on the 89MW Castle Wind Farm to supply renewable energy to Sibanye-Stillwater’s South African mining operations via an Eskom wheeling agreement.
The consortium comprises AIIM, through its renewable energy project development and delivery platform African Clean Energy Developments (ACED), and Reatile Renewables.
This milestone marks the effective date of the power purchase agreement (PPA) between the project company and Sibanye-Stillwater and the commencement of construction. The energy will originate from Castle Wind Farm, located near the town of De Aar in the Northern Cape province of South Africa and will result in energy cost savings, increased energy security and decarbonisation benefits for Sibanye-Stillwater, a multinational mining and metals processing group.
Sechaba Selemela, investment principal at AIIM, noted that “the transaction was another step towards greater reliance on renewable energy and solving South Africa’s energy crisis”. Selemela added that, “with this transaction, which follows on a similar wind farm development Msenge Emoyeni reaching financial close in March, AIIM continues to be committed to, and successfully executing, its mandate of investing in renewable energy projects that can deliver strong returns for our investors and make an impact over the long term.”
AIIM is a division of Old Mutual Alternative Investments (OMAI) and has invested in the project through the IDEAS Managed Fund, one of South Africa’s largest domestic infrastructure equity funds which invests in the SADC region’s economic, social, and energy infrastructure. ACED is a renewable energy developer and asset originator within the AIIM stable.
This transaction will be the second private wind power wheeling project in South Africa to have reached financial close.
Rand Merchant Bank, a division of FirstRand Bank Limited, is the sole mandated lead arranger for the project.
Neal Froneman, CEO of Sibanye-Stillwater said, “This marks our first major step in delivering over 550 MW of our renewable project portfolio and is a significant milestone in our journey to carbon neutrality by 2040. The project will not only play a pivotal role in reducing carbon emissions and mitigating climate change but also results in cost savings on electricity and provides energy security benefits for Sibanye-Stillwater’s SA operations. Additionally, it will also contribute to addressing the electricity challenges in South Africa. We look forward to bringing the project into operation.”