Tata Power, India’s largest integrated power utility today announced the successful financial closure for its 134 MW Amakhala Emoyeni Wind Farm Project through its South African Joint Venture Company with Exxaro, Cennergi (Pty.) Ltd. The Company was selected as the ‘preferred bidder’ for the Amakhala wind farm project and the 95 MW Tsitsikamma wind farm project by the Department of Energy, Government of South Africa in 2012.
Cennergi have successfully tied up the entire debt requirement through a consortium of lenders, namely Standard Bank and International Finance Corporation with Standard Bank acting as the mandated lead arranger. The signing of financing agreements was completed on May 9th, 2013. The Company also completed pre-disbursement conditions under the financing agreements for availing Interim Disbursement and received the first loan disbursement on June 3rd, 2013. The project of approximately Rand 3945 million is being funded through a debt equity mix of 80:20. The project financing prises of equity of Rand 789 million and Rand Term Loans of 3156 million.
The Company’s other 95 MW Tsitsikamma Community Wind Farm is also expected to achieve financial closure in a week. 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.
Cennergi is 50:50 Joint Venture between South Africa’s Exxaro Resources Limited (“Exxaro”) and The Tata Power Company Limited (“Tata Power”).