Cennergi Raises $700 Million for South African Renewable Projects

Written by Richard Finlayson, Senior International Editor for Industrial Info Resources (Sugar Land, Texas)--Cennergi, a new independent power producer (IPP), has raised $700 million to fund its clean energy projects in South Africa. Cennergi is a joint venture (JV) between Exxaro Resources Limited (OTC:EXXAY) (Centurion, South Africa) and Tata Communications (NYSE:TCL) (Mumbai, India).

Cennergi won the rights for 33% of the 1,043 megawatts (MW) of the renewable power capacity released in the Department of Energy's second bidding window.

The company's current projects are the 134-MW Tsitsikama windfarm and the 95-MW Clarkson project, both in the Eastern Cape. The combined 229-MW output will account for about 35% of the allocation for wind power in the second window.

Cennergi announced that it had reached financial closure on the projects with Standard Bank (Johannesburg), International Finance Corporation (World Bank, WashingtonD.C.) and Nedbank Capital (Johannesburg) for $520 million, with Exxaro and Tata funding $120 million in return for equity.

For related item, see April 17, 2013, article - New African Power Player Cennergi Searches for Established Partners.

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