Tata Power closes financing for two wind projects in South Africa
Tata Power (Tata Group) announced yesterday the successful financial closure for its 95 MW Tsitsikamma Wind Farm Project in South Africa 50:50 Joint Venture Company with Exxaro, Cennergi (Pty.) Ltd.
The Company had recently also announced the successful financial closure of its 135 MW Amakhala Emoyeni Wind Farm Project in South Africa. The Company was selected as the 'preferred bidder' for 230 MW wind farms- 135 MW Amakhala Emoyeni Wind Farm Project and the 95 MW Tsitsikamma Wind Farm Project by the Department of Energy, Government of South Africa in 2012.
95 MW Tsitsikamma Wind Farm Project
Cennergi has successfully tied up the entire debt requirement through Nedbank. The signing of financing agreements was completed on June 5th, 2013. The Company also completed pre-disbursement conditions under the financing agreements for availing Interim Disbursement and received the first loan disbursement on June 28th, 2013. The project of approximately Rand 2905 million is being funded through a debt equity mix of 75:25. The project financing comprises of equity of Rand 726 million and Rand Term Loans of 2179 million.
With this, the Company attained financial closure of both its wind projects, 95 MW Tsitsikamma Wind Farm Project and 135 MW Amakhala Emoyeni Wind Farm Project.
135 MW Amakhala Emoyeni Wind Farm Project
Tata Power announced the successful financial closure for its 135 MW Amakhala Emoyeni Wind Farm Project through its South African Joint Venture Company with Exxaro, Cennergi (Pty.) Ltd. in the month of June 2013. It tied up financing with a consortium of lenders, namely Standard Bank and International Finance Corporation with Standard Bank acting as the mandated lead arranger.
The 35 MW Amakhala Emoyeni Wind Farm Project of approximately Rand 3945 million is being funded through a debt equity mix of 80:20. The project financing comprises of equity of Rand 789 million and Rand Term Loans of 3156 million.
The wind projects will be located in Eastern Cape, South Africa and are expected to achieve commercial operations in 2016. Power Purchase Agreements and Implementation Agreements for these projects were signed with Eskom and Department of Energy, Government of South Africa respectively on May 9th, 2013.
Source: Tata Power
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