Funding encourages sub-Saharan solar installations
INVESTEC BANK LIMITED, through its Power and Infrastructure Finance (PIF) division, recently signed a R100-million term facility with Mettle Solar Investments (“Mettle Solar”) that will be utilised to part fund Mettle Solar’s current and future portfolio of commercial roof top solar installations in sub-Saharan Africa.
According to Michael Meeser, head of PIF Africa, with the decreasing cost of solar installations, the environment is becoming ever more favourable for the commercial roof top solar market, with property companies and large energy users leading the way.
“Investec is already one of the leaders in the provision of funding to this sector in North America and we were able to leverage our international expertise and deep understanding of the solar industry to provide an innovative funding solution to Mettle Solar.
“This in turn allows Mettle Solar to provide a competitive alternative energy product to their clients, facilitating the growth of solar energy in Africa,” says Meeser.
Mettle Solar is a joint venture established by JSE-listed Tradehold Group, through one of its subsidiaries Mettle Investments and the TriGen Group.
Mettle Solar is a company that develops, finances, constructs, operates and maintains rooftop solar photovoltaic systems ranging in size from about 100kWp to 5MWp.
It provides clean energy solutions to commercial, industrial, and corporate clients at commercially competitive tariffs, allowing for a sustainable and cost effective alternative to grid-supplied power.
Francois van Themaat, chief executive officer of Mettle Solar says the company has been active in the roof top solar market since 2013 and to date has installed in excess of 11,2 MWp of roof top solar projects, with a further 9,8 MWp of installations planned within the next 12 months.
“The additional funding that this facility provides, marks the beginning of a partnership with Investec that will allow our business to grow from strength to strength, as we roll out both our grid-tied and off-grid solar solutions to shopping centres, factories, office blocks, warehouses, wine farms and hotel resorts throughout sub-Saharan Africa,” says Van Themaat
The first advance under the facility will be used to refinance an operating portfolio of 10 projects, with a combined capacity of approximately 5MW.
Investec PIF was the sole arranger and underwriter of the transaction.
Investec’s Corporate and Institutional Banking division provides a wide range of products, services and solutions to select corporate clients, public sector bodies and financial institutions.
The division undertakes the bulk of Investec’s proprietary trading activities, as well as all non-private client deposit taking, corporate and public sector lending, project finance, acquisition and leveraged finance as well as advisory and structuring activities.
The division has eight product teams that are divided equally between banking activities and financial markets activities.