13th January 2024, Lusaka – We are pleased to announce the successful listing of Zambia’s debut Green Bond on the Lusaka Securities Exchange (LuSE).
This milestone, which has been achieved through CEC’s subsidiary, CEC Renewables Ltd, will play a crucial role in driving renewable energy development in the country.
The listing ceremony was held on 12 January 2024 at the Intercontinental Hotel in Lusaka with the Minister of Finance and National Planning, Dr. Situmbeko Musokotwane as Guest of Honour.
Dr. Musokotwane commended the CEC Group for successfully listing the Green Bond for Zambia and contributing to the growth of the capital markets.
Dr. Musokotwane said the initiative that has been taken by the CEC Group is indeed climate smart and will not only significantly contribute to meeting the increased energy demand arising from the anticipated expansion of the economy but will also support Government’s commitment to climate mitigation, while also focusing on building and developing key sectors of the economy such as mining, agriculture, among others.
Also speaking at the ceremony, the CEC Group Board Chairperson, Mr. London Mwafulilwa said the Group is thrilled to be the first Company to issue a Green Bond in Zambia.
Mr. Mwafulilwa added that the Company remains keen on actualizing its green energy generation ambitions and will seek to attain this, as it issues the remaining tranches of the $ 200 million bond.
He added that the subscription to the bond opened in December of 2023 and by 28th December 2023, the first $54 million tranche was fully subscribed.
Speaking on behalf of the Minister of Green Economy and Environment, Honourable Engineer Collins Nzovu, Permanent Secretary, Dr. Douty Chibamba said the listing of the CEC Green Bond not only opens up the capital markets for Zambia but also supports the country’s nationally determined contribution commitment to reduce carbon emissions, as it focuses on moving towards green and renewable energy sources, such as biogas, solar, and wind and prioritizing energy use efficiency, as well as reducing electricity transmission and distribution losses from the national grid.
The Minister of Energy, Honourable Peter Kapala also commended the Board and Management of the CEC Group for the additional investment the Company will be making, further stating that the targeted 200 MW generation from CEC’s current and future projects will not only cushion the current energy demand but also demonstrate the viability of the sector with favorable policy reform implementation.
According to Ms. Kayula Siame, the Chairperson of the Lusaka Securities Exchange (LuSE) Board, Green Bonds have emerged as highly sustainable investment instruments, further stating that bonds have the potential to support the growth of renewable energy projects in Zambia.
Ms. Siame further said that the CEC Group has utilized the LuSE for funding its projects before. The first instance was in 2008, when the Company raised US$23.4 million from the market.
“We would like to express our gratitude to our investors, including Emerging Africa Infrastructure Fund, Absa, Atlas Mara, and African Local Currency Bond (ALCB) Fund, for their overwhelming support and belief in Zambia’s inaugural green bond. Further, we extend our sincere appreciation to the LuSE and all other market players for their invaluable contribution in facilitating the listing of Zambia’s inaugural Green Bond,” concluded the CEC Group Board Chairperson, Mr. London Mwafulilwa.
For more information, contact:
Verona Mwila Nkolola
Head Corporate Communications and Investor Relations
About CEC Plc
Copperbelt Energy Corporation Plc (CEC) is a Zambian power generation, transmission, distribution, and supply company, operating in the Copperbelt Province of Zambia and the Katanga region of 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 industry in the region and is a member of the Southern African Power Pool, a pioneering international power trader in Southern Africa. The company is publicly traded on the Lusaka Securities Exchange with more than 5,000 investors. It is the first locally listed company to achieve market capitalization ZMK 11 billion.
About CEC Renewables
CEC-R was incorporated in October 2022 as a renewable energy growth platform with the ability to be scaled up with the deployment of renewable energy on the Zambian grid. CEC-R is a 100% subsidiary of CEC PLC mandated to develop renewable assets. The company has in operation the Riverside solar PV plant (34MW), and currently under construction is its 60 MW Itimpi solar PV plant scheduled for commissioning in early 2024.