Standard Bank supports AMEA Power project with $100m debt funding
Standard Bank has partnered with AMEA Power and reached financial close on a 120MW solar project in South Africa.
By Standard Bank
Standard Bank is proud to announce that it has partnered with AMEA Power and reached financial close on the 120MW Doornhoek Solar Photovoltaic (PV) Project located near Klerksdorp in the North West Province.
AMEA Power is one of the fastest-growing renewable energy companies based in the Middle East, and this landmark transaction marks the company’s strategic entry into South Africa’s renewable energy market. Headquartered in Dubai, AMEA Power is the majority shareholder in the 120MW solar PV project, and partnered with Ziyanda Energy and Dzimuzwo Energy, which are wholly owned by African women.
The bank acted in its capacity as mandated lead arranger, facility agent, account bank and hedging bank in the transaction and provided the debt funding of $100 million (approximately ZAR1 800 million) to AMEA Power. The total project costs of ZAR2.09 billion (c. $115.2 million) were funded through senior facilities (senior JIBAR and preference shares) totalling ZAR 1.77 billion (c. $97.6 million) and ZAR0.25 billion (c. $13.8 million) in ancillary debt facilities. The transaction required collaboration across multiple teams and was the bank’s first project finance deal that included a senior preference share facility.
The 120MW Doornhoek Solar Photovoltaic Project was awarded preferred bidder under Bid Window 6 of the Renewable Energy Independent Power Producer Procurement (REIPPP) Programme in South Africa. It is expected to generate more than 325GWh of clean energy per year to power an estimated 97 000 households and contribute to South Africa’s wider goal of renewable energy, accounting for 22% of the energy mix by 2030. The project is expected to commence commercial operations by December 2025.
Additionally, in line with AMEA Power’s Community Investment and Development Program, the company will implement initiatives aimed at benefiting the socio-economic growth and development of the local community, which are aligned with the United Nations’ Sustainable Development Goals.
AMEA Power Chairman Hussain Al Nowais said, “We are delighted to reach financial close on the 120MW Doornhoek solar project in South Africa. The country has vast renewable energy opportunities, and we are proud that with this project, we will support South Africa in its renewable energy transition. We are also grateful for the support from our lenders and that of the South African government for turning this project into a reality.”
As the leading enabler of energy and infrastructure on the African continent, Standard Bank is proud to facilitate transactions that will drive the continent's energy transition while improving the lives of our people.
Standard Bank Group is the largest African bank by assets with a unique footprint across 20 African countries. Headquartered in Johannesburg, South Africa, it is listed on the Johannesburg Stock Exchange, with share code SBK, and the Namibian Stock Exchange, share code SNB.