Alten Energias’ Alten Kenya Solarfarms BV has secured a $35 million loan from the EAIF for a 40 MW project it is building in the country. (Image: Shutterstock.com) The Emerging Africa Infrastructure Fund (EAIF) will lend $35 million to the Kesses solar generation plant in Kenya.
The EAIF, which is part of the Private Infrastructure Development Fund Group (PIDG), will provide the loan over a 15-year term. The Kesses solar generation facility will be built near Eldoret in the Rift Valley region of Kenya.
Sine Zulu, investment specialist with EAIF’s investment managers, Ninety One, said the Kesses plant would bring multiple benefits to Kenya’s economic development. “It will also play an important part in combating climate change and strengthening Kenya’s ability to recover from COVID-19. EAIF is now established as a lender of choice for renewable energy companies investing in Africa.”
Kenya has become the 9th African country where EAIF has supported renewable energy projects in recent years. The others are Burkina Faso, Cameroon, Côte d’Ivoire, Mali, Mozambique, Rwanda, Tanzania and Uganda.
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The Kesses project will cost a total of $87m. The first part of the loan was disbursed to Alten Kenya Solarfarms BV (Alten), the Kenyan business of the Alten Group, in late December 2021.
Alten will sell all the Kesses facility’s output to national energy utility Kenya Power and Lighting Company (KPLC) on a 20-year take-or-pay Power Purchase Agreement. Construction of the plant has already commenced and it is expected to be completed later this year.
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Standard Bank is a long-established lender to the EAIF and was the lead negotiator for financing Alten through $41m in debt comprising a term loan, VAT and Debt Service Reserve facility. Standard Bank is acting through its CIB and Stanbic Bank Kenya Limited divisions.
Sherrill Byrne, Executive Energy and Infrastructure Finance at Standard Bank, said the Kesses Project would allow them to provide continued support to the use of clean energy across the African continent, allowing for a more sustainable future. “This is the second project Standard Bank has funded with the Alten Group and we were pleased to be able to bring in and partner with EAIF for the funding.” Have you read? Ed’s note: Concrete footprint underlying all renewable energy plants Eldoret has the largest […]
