Debt, guarantees and mezzanine
This year, the solar plant Senergy 2, funded by Green Africa Power (GAP), delivered full production output. This meant that Senergy 2, the SPV which developed and operates the plant, was able to attract long-term senior debt refinancing and short-term construction debt from FMO, the Dutch development finance institution, for an extension to the 20MW plant. Repayment of the short-term construction bridging loan made to Senergy 2 is expected in 2018.
GAP, alongside InfraCo Africa, also assisted in the closure of a deal to finance a 70MW geothermal plant in Ethiopia. GAP’s proposed funding has been taken on by InfraCo Africa, allowing the deal – the first geothermal IPP in Ethiopia – to be signed.
PIDG strives to meet the demands of the market in which it operates. Following a strategic review of its activities and priorities, it became clear that there were not enough projects in the renewable power sector that were sufficiently developed to justify continuing with a specialised facility which trades only in intermediate capital products, such as GAP.
While PIDG’s commitment to renewable energy in Africa continues, it has been decided that GAP will not take on new mandates and will wind down its operations.