See Infra Impact Investment Managers’ investments since 2023 in our Dealmaker’s Log.
The Local Community Trust Debt Fund, managed by South Africa-based Infra Impact Investment Managers, has provided funding to H1 Roggeveld Wind, the vehicle through which H1 Holdings owns its stake in the Roggeveld Wind Farm.
Third Way Investment Partners, an investor in the Local Community Trust Debt Fund, also participated in the transaction as a co-investor.
The transaction provides H1 Roggeveld with a long-dated equity funding solution for its investment in the Roggeveld Wind Farm. This broadens the fund’s investment portfolio beyond refinancing community investment vehicles (CIVs) to include black-owned equity investors participating in South Africa’s Renewable Energy Independent Power Producer Procurement Programme (REIPPPP).
The investment builds on the fund’s track record of refinancing legacy REIPPPP debt on more sustainable terms, following its earlier refinancing of community trust debt in the Northern Cape.
The Roggeveld Wind Farm is situated on the border of the Northern and Western Cape. Since coming into commercial operation in February 2022, it has supplied clean electricity to the national grid under a long-term power purchase agreement with Eskom. With an installed capacity of 147 MW, the project was designed to meet the electricity needs of approximately 49,200 households.
Bulelwa Ntshingwa, portfolio manager at Infra Impact, commented: “This transaction demonstrates the power of patient, purpose-built capital in advancing South Africa’s renewable energy sector. By funding H1 Roggeveld’s investment in the Roggeveld Wind Farm on more sustainable terms, the fund is contributing to the Just Energy Transition (JET), which faces the challenge of balancing large-scale decarbonisation with the reality of high national unemployment and complex socio-political dynamics. The fund plays a key role in addressing a market gap in the REIPPPP, helping ensure communities remain engaged with and participate meaningfully in the JET.”
Fulufhelo Makwetla, managing director of Third Way Investment Partners, said: “Co-investing in this transaction reflects our alignment on the impact that additional capital from a fund of funds can have on collectively meeting our sustainable development goals. This collaboration is a testament to our confidence in both the Roggeveld asset and Infra Impact’s approach to structuring funding solutions that deliver real benefits to black-owned independent power producers, investors, and CIVs.”
Greg Issac, investment principal and transaction lead at H1, added: “The Roggeveld equity transaction strengthens the long-term funding of our investment in the Roggeveld Wind Farm and provides additional capacity for H1’s continued investment across the energy transition in South Africa. The collaboration between H1, Infra Impact and Third Way reflects the role that long-term partnerships and fit-for-purpose capital can play in enabling continued and sustainable black participation in the local renewable energy sector and in ultimately realising the goals of South Africa’s JET and the REIPPPP.”
Want to know who is raising, investing, and exiting in Africa? Get Africa Private Equity News’ monthly Dealmaker’s Log – a database of reported investment deals, exits, and fundraising closes. Access the latest Dealmaker’s Log here