Africa GreenCo Group has signed a $27 million Guarantee Facility with GuarantCo, to boost renewable energy in Southern Africa for GreenCo’s Ilute Project in Western Province.
Under this Guarantee Facility, GuarantCo will issue guarantees in favour of the Independent Power Projects (IPPs) from whom GreenCo will buy power, backing GreenCo’s payment obligations to such IPPs.
Speaking at the signing ceremony, GreenCo’s Chief Investment Officer, Pug Bennet said GuarantCo’s backing enhances GreenCo’s credibility in the market.
Mr. Bennet said that the due diligence work by the GuarantCo team has been extensive and should be commended for their thoroughness and support in developing a bespoke Guarantee Facility.
“The guarantees that will be issued under this Guarantee Facility are a key requirements to enable GreenCo’s IPPs to reach financial close and start construction of the much needed power for the region” said Mr. Bennet in a statement issued to RCV News in Lusaka today.
Meanwhile, GuarantCo Chief Executive officer Layth Al-Falaki said that he was delighted to have closed the transaction with Africa GreenCo, which aligns with the PIDG 2023 – 2030 Strategy focus on climate action.
He said that the sister company, InfraCo Africa has supported the development and growth of Africa GreenCo’s pioneering offering since 2020, adding that it is a good example of the strategic focus to replicate deals and executing transactions more efficiently to deliver the impact to local people faster.
The collaboration between GreenCo and GuarantCo will help unblock this bottleneck and support the region in meeting the increasing power demands of its growing industries and achieving its sustainable development goals.
