Fund Manager Takes Stakes in South African Solar Trio

Fund manager African Infrastructure Investment Managers (AIIM), with its Ideas Managed Fund, has obtained majority stakes in 3 brand-new solar energy plants in South Africa, totaling 30MW.

The projects, which got to a financial close in May, are anticipated to achieve commercial operation in March and April 2023.

They will connect through a mixture of wheeling and behind-the-meter solutions, feeding power into Harmony operations in the Welkom area in South Africa. Construction is expected to begin in June.

They will provide 68 gigawatt-hours of electricity in the first 12 months of operations and 1.3 terawatt-hours over the 20-year lifespan of the facilities.

The portfolio has been funded through a mix of debt and equity.

The solar energy project

Equity was funded by Ideas Managed Fund and the Mahlako Financial Services-managed Mahlako Energy Fund 1.

Debt was provided by Rand Merchant Bank, a division of FirstRand Bank.

The projects were jointly created by BBEnergy, Energy Group, and Harmony.

AIIM investment director and co-portfolio manager of the IDEAS Managed Fund Sean Friend stated: Together with our partner Mahlako, we are excited to complete this transaction and create a lasting partnership with Harmony.

This portfolio better lodges Ideas as a top investor in the renewable energy, along with the commercial and industrial private power market mainly.

“We eagerly anticipate seeking additional investments in this sector, in light of the focus on clean energy and the need to seek a sustainable energy mix for SA.”

Read the original article on Renews.

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