IFC proposes funding to Botswana solar power project
IFC proposes funding to Botswana solar power project
The IFC has disclosed a proposed financing package to Mmadinare Solar.
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The International Finance Corporation (IFC) has disclosed a proposed financing package to Mmadinare Solar.
The project involves the development, financing, construction, operation, and maintenance of the greenfield Mmadinare 50MWac Solar PV Facility on a 140-hectare site, located approximately 5.8km northwest of Selebi Phikwe and 9.2km southeast of Mmadinare in Botswana’s Selebi Phikwe District. The Mmadinare Project (Phase II) replicates the adjacent 50MWac Selebi Phikwe Project (Phase I), which is currently under construction. Together, they will bring the total capacity of the Mmadinare Solar complex to 100MWac.
The project is expected to cost up to $58 million. The proposed financing structure includes: (i) an IFC A loan of up to $19 million, (ii) a USD interest rate swap intermediated by IFC, and (iii) a parallel loan of up to BWP 380 million (approximately $28.5 million) from South Africa's Rand Merchant Bank. The remaining balance will be covered by equity from Scatec.
Mmadinare Solar is a special purpose vehicle (SPV) incorporated in Botswana. Scatec ASA indirectly owns 100% of the SPV’s shares and will serve as the EPC (engineering, procurement, and construction), O&M (operations and maintenance), and asset manager, leveraging its vertically integrated business model.
Scatec, listed on the Oslo Stock Exchange, is a leading global renewable power producer, focused on delivering affordable and clean energy. The company develops, builds, owns, and operates solar, wind, and hydropower plants, as well as battery energy storage solutions. With over 731 employees, Scatec has 4.23 GW in operation and 342 MW under construction across four continents.
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