CEC Renewables announces issuance of second Green Bond tranche valued at USD 96.7 million

CEC Renewables, a subsidiary of the Copperbelt Energy Corporation (CEC), has announced the issuance of its second Green Bond tranche, valued at USD 96.7 million.

This milestone comes exactly one year after the issuance of the first tranche in 2023, showcasing CEC’s steadfast commitment to addressing Zambia’s energy needs through innovative financing solutions and renewable energy projects.

Speaking at the announcement, CEC Managing Director and CEO, Mr. Owen Silavwe, stated:

“In 2023, we shared our intentions to issue a second tranche as part of our strategy to accelerate solar energy development. Today, I am proud to announce that this ambition has become a reality.”

The proceeds from this second tranche will finance the second phase of CEC Renewables’ Itimpi Solar PV Plant, which is expected to contribute 136 MW to the Company’s renewable energy portfolio. This addition will bring CEC Renewables’ total solar generation capacity to an impressive 236 MW, reinforcing its role as a key player in Zambia’s renewable energy landscape.

Reflecting on Zambia’s energy challenges, Mr. Silavwe added “The energy crisis the country has faced has been a wake-up call for all stakeholders in the power sector. It is imperative to accelerate the development of sustainable solutions to achieve national energy security.”

Collaborative Efforts Driving Success

The issuance of this tranche was facilitated by Cygnum Capital, serving as Lead Arrangers, with Stanbic Bank Zambia as Lead Manager and Underwriters. Other bondholders include:

• ZCCM Investments Holdings Plc (ZCCM-IH)
• FMO, the Dutch entrepreneurial development bank
• African Local Currency Bond Fund (ALCB Fund)
• Emerging Africa and Asia Infrastructure Fund Limited (EAAIF)

James Doree, representing Cygnum Capital, emphasised the value of CEC establishing its green bond programme in 2023 and continuing to tap the market: “CEC plc is a trailblazer in Africa’s capital markets. As the leading private operator in the Southern Africa Power Pool (SAPP) and key supplier of clean energy to the mining sector, CEC-R has now shown that it can bring commercial investors from the region together with international institutions to finance new renewable energy capacity. This green bond programme can provide a template for future issuance and issuers.”

Mwila Pascal Mwenya, representing Stanbic Bank Zambia stated:

“We are thrilled to underwrite this issuance. Energy is the lifeblood of industrial and economic growth, and our participation in this bond underscores our commitment to advancing Zambia’s future by investing in key sectors driving sustainable growth.”

Robert Voskuilen, Manager of Energy at FMO, said: “By investing in CEC’s second Green Bond tranche, we are supporting the development of new energy projects at a critical time for Zambia. As the country faces extensive load-shedding, increasing green power generation is essential for it’s energy security and sustainability.”

Paromita Chatterjee, Director at Ninety-One, the Fund Manager of EAAIF, said: “The Itimpi Solar PV plant will provide much-needed power to communities and businesses facing an energy crisis in Zambia, aligning with EAAIF’s mandate to invest in transformative energy infrastructure across Africa and Asia”.

Olamipo Ogunsanya, Investment Officer from the ALCB Fund noted:

“We are pleased to have supported CEC-Renewables for a second time through our involvement in another successful issuance. The positive outcome of the transaction highlights the importance of local and regional investors in driving such catalytic investments. The ALCB Fund’s involvement demonstrates its continued efforts to deepen local capital markets, while supporting issuers that promote environmental sustainability, and broader developmental impact.”

ZCCM-IH CEO, Ndoba Vibetti, highlighted the strategic importance of this investment:

“Our mission is to create tangible wealth sustainably for the benefit of the Zambian people and all our stakeholders. This bond, which finances the development of solar projects, aligns with this mission and our strategic focus in growing our footprint in energy, particularly during the ongoing energy crisis, while also lowering ZCCM-IH’s overall carbon footprint”.

CEC Renewables presently operates two solar plants contributing a combined 94 MW. These plants were financed through the first Green Bond tranche of USD 53 million issued and listed in 2023. Since their commissioning, these facilities have injected a total of 166,079 MWh into the grid, supplying power to critical raw material mines in Zambia and the Democratic Republic of Congo (DRC), and accounting for 6% of CEC Plc’s power-sourcing portfolio.

Mr. Silavwe reaffirmed CEC’s commitment to expanding solar energy generation “We are pursuing an aggressive agenda to develop more solar plants, as an entity and through public-private partnerships. As a company with over 60 years of history in Zambia, we are committed to playing a pivotal role in achieving the country’s energy security goals. So far, we have issued just over USD150 million of our bond and will be issuing another tranche to meet the full value of the USD200 million Green Bond”.

Preparation for the development of Itimpi Phase Two is already underway, with the plant scheduled for commissioning in 2025.

“This project represents a significant step in our broader sustainability strategy. It reflects not only our ambition but also the collective effort of our partners and stakeholders to build a brighter, greener future for Zambia,” concluded Mr. Silavwe.

ENDS.

Notes to the Editor

For More Information Contact:

Verona Mwila Nkolola
Copperbelt Energy Corporation Plc (CEC)
[email protected]

Eric Ngondo
Marketing | Head Brand & Marketing
[email protected] www.stanbicbank.co.zm

Loisa Mbatha
ZCCM-IH
[email protected]

Monica Beek
FMO
[email protected]

Olamipo Ogunsanya
Cygnum Capital
[email protected]

Paromita Chatterjee
Ninetyone
[email protected]

About CEC Renewables (CEC Renewables Bond Issuer)

CEC Renewables Limited was incorporated in October 2022 as a platform for renewable energy expansion, designed to scale up the deployment of renewable energy across the Zambian grid. The Company is a 100% a subsidiary of Copperbelt Energy Corporation PLC mandated to develop renewable assets. The Company has in operation the 34 MW Riverside Solar PV Plant and the 60 MW Itimpi Solar PV Plant. The company has begun the development of an additional 136MW solar plant in Itimpi, with ambitions to attain 250MW of solar energy generation by 2025.

About Stanbic Bank Zambia(Green Bond Underwriter)

Stanbic Bank Zambia is a wholly owned subsidiary of Standard Bank Group. The group is listed on the Johannesburg Stock Exchange. On the Zambian market, the bank has been in existence for over 67 years and is currently providing financial services to over 150,000 customers.

Stanbic Bank has 24 branches and 99 ATMs across the country. Our digital services on our online platforms such as Internet banking, Business Online, and Enterprise Online can be accessed from anywhere across the globe. Currently, Stanbic Bank Zambia is the largest bank by capital base in the market. The Bank is committed to driving Zambia’s growth and provides a full spectrum of financial services covering Personal and Private Banking, Business and Commercial Banking, and Corporate and Investment Banking.
www.stanbicbank.co.zm