CEC Renewables announces First Green Bond Coupon Payment of USD 2.4 million
LUSAKA, Zambia – June 21, 2024 – CEC Renewables, a subsidiary of Copperbelt Energy Corporation PLC (CEC), is pleased to announce its first Green Bond Coupon payment of USD 2.4 million. The first coupon payment marks the Bond’s sixth month anniversary, which now makes it tradeable on the Lusaka Securities Exchange. This milestone payment not only showcases the role and viability of Green Bond investments for Zambia but also underscores CEC Renewables' commitment to delivering value to Zambia and its investors.
CEC Renewables, in collaboration with CEC PLC, registered Zambia's first USD 200 million Green Bond Program, with a successful issuance of the first tranche equal to $53.5 million on December 21, 2023. The proceeds from this Green Bond have been utilised in financing of the Company's existing 34MW Solar Plant in Riverside, Kitwe, and the development of the 60MW Solar Plant in Itimpi, Kitwe. The Itimpi Solar Plant, commissioned on April 11, 2024, has so far injected 23.5Gwh of renewable energy into the Grid. Year to date, both plants have contributed a total of 47.4Gwh of clean energy.
Hilton Fulele, Asset Manager at CEC Renewables, expressed his satisfaction with the first coupon payment, stating, "the payment of our first coupon not only demonstrates the viability of Green Bond investments for Zambia but also affirms our commitment to ensuring that we deliver value to our investors."
CEC PLC Group Chief Executive Officer, Owen Silavwe, emphasised the significance of CEC Renewables within the group's sustainability strategy, stating, "the establishment of CEC Renewables in the group is an integral part of our sustainability strategy and focus on contributing to bridging the energy gap in the country, particularly at a time when alternative financing has become key to accelerating the development of energy projects. We look forward to the development of more renewable energy projects from CEC Renewables to meet our Group’s sustainability ambitions and further contribute to the diversification of Zambia's energy mix."
The CEC Renewables' Green Bond is a 15-year bond, and the Company plans to issue the next tranche within the year, for the development of an additional 130 MW at its Itimpi site in Kitwe. By raising finance through Green Bonds, CEC Renewables Limited aims to align its funding approach with its broader corporate mission, which includes sustainability objectives and a medium-term aspiration of generating up to 300MW of solar energy.
CEC Renewables remains committed to being at the forefront of driving the growth of renewable energy in Zambia and contributing to the country's energy transition. With its successful Green Bond programme and ongoing implementation of renewable projects, CEC Renewables is well-positioned to make a significant contribution to Zambia's energy landscape.
ENDS.
For inquiries, please contact:
Verona Mwila Nkolola
Head Corporate Communications and Investor Relations
Email: [email protected]
About CEC Renewables
CEC Renewables Limited is a wholly owned subsidiary of CEC PLC incorporated on 28th October 2022 as a platform for renewable energy expansion, designed to scale up the deployment of renewable energy across the Zambian Grid. The Company’s principal activity is renewable energy generation.
The Company currently has an installed capacity of 94MWp of Photovoltaic (PV) solar power generated from its 34MW Plant in Riverside, Kitwe and 60MW Plant in Itimpi, Kitwe.
About CEC Plc
Copperbelt Energy Corporation Plc (CEC) is a Zambian power generation, transmission, distribution, and supply company, operating in Zambia and the Democratic Republic of Congo (DRC). CEC operates in the DRC market through its subsidiary, CEC-DRC SARL.
CEC is a major supplier of power to the mining and industrial sectors in the region and is a member of the Southern African Power Pool and a pioneering international power trader in Southern Africa.The company is publicly traded on the Lusaka Securities Exchange with more than 5,000 investors. The Company has a market capitalisation of over K13 billion.
