Nedbank and Norfund are extending a $132 million loan to Pele Green Energy for the development of renewable power plants, according to Bloomberg News.
The funding involves 1 billion Rand (1 South African Rand = $0.055) from Nedbank, 658 million Rand from Norfund, and 829 million Rand from the Industrial Development Corp.
Most of the funds will go toward constructing new renewable energy facilities, including one for Anglo American Platinum Ltd. The fund will support Pele Green Energy’s goal of achieving 2,000 megawatts of generation capacity.Â
The loan includes a preference share clause that will allow the lenders to benefit if Pele Green increases in value.
The move aligns with the increasing demand for independent power sources in South Africa amid regular power cuts by the state utility, Eskom Holdings SOC Ltd. The government’s call for private companies to develop 5 gigawatts of new solar and wind projects further fuels Pele’s initiatives.
Approximately 80% of Pele’s projects target the private sector, with the remainder through government auctions. The company aims to complete its 100-megawatt solar power plant for Anglo Platinum, marking its initial project for a private client.Â
“The plan is to own and operate five gigawatts of renewable energy projects by 2027,” said Gqi Raoleka, Pele’s managing director to Bloomberg.