Globeleq, an independent power company based in South Africa, has successfully concluded a senior debt restructuring of 682 million South African rand ($37 million) for its 11 megawatts (MW) Aries Solar and 11 MW Konkoonsies Solar plants located in the Northern Cape. This strategic move, led by Standard Bank Ltd, aims to reduce debt costs, resulting in a significant decline in wholesale electricity prices for the operational Aries and Konkoonsies plants. The initiative enhances the capital structure's efficiency, allowing for reinvestment in the power sector and facilitating accelerated equity distributions to the local communities and BEE shareholders. Both plants, part of Globeleq's majority interest portfolio since 2019, have been operational under South Africa's Renewable Energy Independent Power Producer Procurement Programme since 2014.
Globeleq's commitment to being a long-term producer of cost-effective renewable power in South Africa is highlighted by the positive impact of debt restructuring on Eskom and consumers. The reduced power cost is estimated to be approximately $6.7 million over the remaining ten years of the power purchase agreement. This move reinforces Globeleq's contribution to the renewable energy sector, benefiting energy users and encouraging further investment. Standard Bank, expressing satisfaction in partnering with Globeleq, foresees the debt restructuring delivering cost savings to Eskom and end consumers, reaffirming its commitment to a leading role in South Africa's energy sector.