Zambia: FMO, Triodos, others back solar project
Serengeti Energy and Kwama Energy, together with four impact lenders, have partnered to develop the Ilute Solar Project.
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Serengeti Energy and Kwama Energy, together with four impact lenders, have partnered to develop the Ilute Solar Project, located near Sesheke in Western Zambia.
This 32MWp project will supply electricity via the Southern African Power Pool (SAPP), under a market-based power purchase agreement with GreenCo Power Services.
Dutch development bank FMO acted as mandated lead arranger for the $26.5 million debt package, consisting of a senior and a subordinated tranche. The subordinated tranche, provided by FMO and ElectriFI, has a more flexible repayment schedule, thereby acting as a buffer for price fluctuations on the SAPP market.
With this protection in place, the senior tranche is sufficiently derisked to attract a commercial lender, Triodos, alongside FMO. The senior tranche is completed by a concessional tranche from the Sustainable Energy Fund for Africa, the catalytic facility managed by the African Development Bank.
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