By ROGERS KALERO
THE Copperbelt Energy Corporation (CEC) says it is keen on actualizing its green energy ambitions and the issuance of the First Green Bond is an affirmation of its commitment to achieving its flagship 200 megawatt (MW) of solar energy.
[ihc-hide-content ihc_mb_type=”show” ihc_mb_who=”4,5,6″ ihc_mb_template=”2″ ]
Owen Silavwe, the CEC managing director and chief executive officer says the giant energy distribution company was looking forward to subsequent tranche subscriptions, which should provide an opportunity for a diversified investor class to participate in a green and tradable instrument
Mr Silavwe said that CEC was delighted to announce that the first tranche subscription towards the US$200 million green bond programme was oversubscribed by over 178 percent
Mr Silavwe said the first tranche of US$ 53.5 million, issued as a private placement, to a select few investors closed on 28 December 2023. He said the investors in the Green Bond include Emerging Africa Investment Fund who acted as the Cornerstone Investor and others were ABSA Bank, Atlas Mara Bank Zambia and the African Local Currency Bond (ALCB) Fund
“The response from a wide spectrum of investors has been extremely positive and encouraging. We are thankful to our partners for the support and hard work exhibited during the entire Green Bond process. The financing raised through the Green Bond allows us to continue to finance the renewable energy development aligned to our strategy.”
“We remain keen on actualising our green energy ambitions and the issuance of this Bond is an affirmation of our commitment to achieving our flagship 200 megawatt (MW) of solar energy. We look forward to subsequent tranche subscriptions which should provide an opportunity for a diversified investor class to participate in a green and tradable instrument,’’ Mr Silavwe said
And James Doree, head of Corporate Investment Banking at Cygnum Capital, the Bond’s lead arrangers, said his institution was committed to finding capital markets solutions for infrastructure and clean energy investment.
“We are committed to finding capital markets solutions for infrastructure and clean energy investment. This transaction, Zambia’s first non-recourse project bond and the first to be issued locally under the ICMA Green Bond Principles, demonstrates CEC’s leadership and impact, while also providing it with a flexible and scalable structure to roll out their renewables pipelines,” Mr Doree sai.
And Paromita Chatterjee, investment director at Ninety-One, fund manager of the Emerging Africa Infrastructure Fund said the willingness of a local and regional capital market to back an entirely new funding instrument highlights Zambia’s commitment to sustainably advancing its energy market.
“The willingness of a local and regional capital market to back an entirely new funding instrument highlights Zambia’s commitment to sustainably advancing its energy market. We are delighted to partner with CEC and act as the cornerstone investor, increasing investor confidence in a rapidly evolving sector.” Chatterjee said
Bobbline H Cheembela, Atlas Mara Bank Zambia, Acting Managing Director said the Bank was delighted to be part of the first Green bond issuance in Zambia, which is expected to catalyse further green finance in Zambia’s energy sector.
Mr. Cheembela also praised the Government for introducing various incentives to support Green Bond financing such as exemption from withholding tax.
He further stressed that these incentives, have enabled participation of both local and international investors and will assist in developing the Zambian debt capital markets and the inflow of hard currency into the country that will in part support the sovereign debt restructuring.
The proceeds from the Bond will be deployed towards further solar generation investments and associated transmission infrastructure and CEC’s commitment to attaining its green energy generation ambitions of 200MW of solar energy generation is slowly being materialised.
[/ihc-hide-content]
