Investec and SolarAfrica achieve financial close for SunCentral 1 Solar Project

Investec has announced the successful financial close of SolarAfrica Energy’s SunCentral 1, marking the initial 114 MW phase of the company’s utility-scale solar farm development. Investec served as the co-mandated lead arranger for the project’s debt and hedging requirements, including interest rate and foreign exchange arrangements.

SunCentral 1 is part of a larger solar photovoltaic (PV) project located in the Northern Cape, developed by SolarAfrica Energy. Phase 1 of the project, with a capacity of 342 MW, will sell renewable energy to a diverse portfolio of corporate buyers through collaboration with Enpower, a NERSA-approved Energy Trader. The total deal value for SunCentral 1 is R1.8 billion, with Investec providing 50% of the funding.

According to SolarAfrica Energy’s Chief Investment Officer, Charl Alheit, achieving financial close on the first 114 MW is a key milestone for the company. This phase also includes investment in the project’s Main Transmission Substation (MTS), enabling the distribution of power to end users. Alheit highlighted that Phases 2 and 3 are planned to bring the project’s total capacity to 1 GW, further enhancing access to affordable and clean energy for businesses across South Africa via wheeling agreements.

Martin Meyer, Head of Energy and Infrastructure Finance at Investec, emphasized that SunCentral 1 aligns with the bank’s strategy of supporting sustainable energy projects and advancing the transition towards a greener economy. He also noted Investec’s longstanding partnership with SolarAfrica Energy as a shared effort to promote renewable energy solutions in Africa.