Globeleq, a South African independent power producer, has completed the senior debt refinancing of three of its renewable energy plants, totaling 238 MW. Absa Bank, part of the financial services company Absa Group Ltd, served as the required lead arranger and sole underwriter for the $ 362 million debt financing package.

The deal is the second refinancing of renewable assets under the Department of Mineral Resources and Energy’s Independent Power Producer Office (IPPO) Refinancing Protocol. The 138 MW Jeffreys Bay wind farm, as well as the 50 MW De Aar Solar and 50 MW Droogfontein Solar facilities, were all included. Globeleq stated that it wants to refinance its whole portfolio of assets in South Africa in the future. The IPPO encouraged owners of projects contracted under Rounds 1–3.5 to consider participation in a voluntary refinancing scheme in June 2020. The action will improve the capital structures of the projects, resulting in a lower rate for national utility, Eskom. This acquisition would save Eskom more than ZAR 1 billion over the remaining 12 year duration of their power purchase agreements across the three assets.