Zambia: Chisamba solar project increases Stanbic’s energy financing to $223.7m in six months
On May 14, Zambia reached a landmark milestone in its energy transition with the financial close of the 100MW Chisamba Solar PV Project.
By Standard Bank
Stanbic Bank says its financing of three key energy projects in the last six months is amounting to a $223.7 million with a total contribution of 660MW to the grid, demonstrating the Bank’s clear commitment to the energy sector.
In a statement, Stanbic Chief Executive, Mr. Mwindwa Siakalima, announced that following the landmark signing of $100 million Solar PV project with the Kariba North Bank Extension Power Corporation (KNBEPC) and GreenCo Power Services, the Bank’s cumulative financing in the energy sector has now reached $223.7 million in the last six months.
On May 14, Zambia reached a landmark milestone in its energy transition with the financial close of the 100MW Chisamba Solar PV Project, the largest grid- connected solar development in the country’s history and the largest one in sub-Saharan Africa to-date, outside of South Africa.
The project, developed by KNBEPC, a wholly owned subsidiary of Zesco Limited, secured a $71.5 million in commercial debt from Stanbic Bank, a member of the Standard Bank Group, with financing anchored by a 13-year Power Purchase Agreement (PPA) with GreenCo, a leading SADC and Zambian renewable energy trader.
Stanbic’s financing of the energy sector in 2024-2025
In November 2024, following the drought-induced energy crisis, Stanbic signed a Facilities Agreement with Africa GreenCo Group through its newly incorporated Zambian subsidiary GreenCo Finance Solutions Limited worth $55.5 million to finance power imports and alleviate Zambia’s energy crisis.
GreenCo FinanceCo has used the facilities to prepay for over 130MW of electricity imports during the ongoing energy crisis, alleviating the financial pressure on its clients to prepay for the power they need. The requirement to prepay for electricity has been a significant financial constraint on offtakers in Zambia.
By the end of last year, Stanbic successfully underwrote Zambia’s second Green Bond tranche, valued at $96.7 million for the Copperbelt Energy Corporation Renewables.
This milestone was achieved one year after the issuance of the first tranche in 2023, highlighting CEC’s steadfast commitment to addressing Zambia’s energy needs through innovative financing solutions and renewable energy projects.
Stanbic played a key role in helping the Copperbelt-based power utility issue this bond by underwriting the issuance, making it possible for CEC to finance their Itimpi Solar PV Plant, which is expected to contribute 136 Megawatts (MW) to the company’s renewable energy portfolio.
Stanbic’s Financing in energy sector to increase power availability by 660MW
Commenting on the latest successful deal, Mr. Siakalima said: ‘Zambia continues to experience national load shedding due to reduced hydropower output. Once operational, the KNBEPC plant, located in Chisamba, will add urgently needed clean energy to the national grid and support energy security—without placing pressure on the public purse.
“As Stanbic, we are excited to maintain our lead role in structuring complex financial transactions to boost uptake of electricity to the national grid. With KNBE being a subsidiary of Zesco, this transaction further supports Zesco’s commitment to diversifying its energy generation sources. Stanbic is proud to be at the forefront of driving Zambia’s goal of attaining energy resilience critical for the nation’s growth.”
He continued: “It is pleasing to note that our involvement in 3 key energy deals have amounted to over $223 million worth of our investment and contributed about 660MW to grow our country’s energy sector and contribute towards national development. The Bank remains ready to continue to support Zambia’s economic growth of which energy is a vital component.’
Stanbic Head, Corporate & Investment Banking (CIB), Ms. Lubamba said: “This transaction marks our largest renewable project financing in Zambia to-date. It exemplifies our dedication to backing sustainable infrastructure and climate-smart development, as well as demonstrating the positive impact of Public-Private Partnerships (PPPs) have on growing our energy sector.
“Our experience of having structured two complex financial transactions with the power imports deal with GreenCo, as well as underwriting Zambia’s second Green Bond tranche, valued at $96.7 million for CEC Renewables, has given us unrivalled expertise in being the market leaders to provide solutions to address the country’s energy crisis. We look forward to the commissioning of the landmark project at the end of this month and positive impact more power on our national grid will have for domestic consumers.”