By ROGERS KALERO
THE Copperbelt Energy Corporation (CEC) has registered its US$200 million Green Bond which will be structured as a programme, whose proceeds will accelerate the actualisation of its ambitions to generate at least 200 Mega Watts (MW) of renewable energy and specifically solar energy with possible storage implementation
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CEC Managing Director and Chief Executive Officer Owen Silavwe announced the registration of its green bond with the Securities and Exchange Commission on the sidelines of the COP 28 Climate Summit in Dubai, United Arab Emirates, on Energy Day
“We are pleased to announce the registration of our US$200 million Green Bond, structured as a programme, whose proceeds will accelerate the actualisation of our ambitions to generate at least 200MW of renewable energy and specifically solar energy with possible storage implementation,’’ Mr Silavwe said
And Minister of Green Economy, and Environment, Engineer Collins Nzovu said Government has developed a green growth strategy, which is part of its programme to become a prosperous middle-income country by 2023.
Mr Nzovu said the Green Growth strategy was the country’s blueprint for greening the economy and the environment by deliberately pursuing a development trajectory that is resource efficient, low carbon, climate resilient and socially inclusive.
“The government has put in place two regulatory frames that are being leveraged to raise green investments, these being the Green Bonds Framework issued by the Securities and Exchange Commission in 2019 and the Green Loans Framework issued by the Bank of Zambia,’’ Mr Nzovu said.
He congratulated CEC for successfully registering the country’s debut Green Bond, further commending the private sector’s leadership in showcasing the country’s prowess in the green energy transition
“The US$200 million bond programme has its first tranche of US$54 million, closing by the end of the year. The lead arrangers of the Green Bond are Cygnum Capital, with Emerging Africa Investment Fund, as cornerstone investors in partnership with the Absa Group.
“We are proud to have been the lead arrangers for CEC’s green bond,” Cygnum Capital representative, James Doree said.
“It demonstrates how the combination of a strong sponsor; a transparent policy framework and supportive anchor investor can drive private sector solutions to the green energy transition,’’ he said
“Our partnership with the sponsor has made it possible to actualise the ingenious financing” said Theuns Ehlers, head of project finance at Absa Group.
“Having a sponsor with strong operational and financial capabilities has helped the structuring and bankability of a private-to-private project finance bond raise therefore, we are very proud to be associated with this transaction.”
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