India's largest integrated power utility, Tata Power, announced it has secured financing for the 134 megawatt Amakhala Emoyeni Wind Farm Project in South Africa through its Joint Venture Company with Exxaro, Cennergi (Pty.) Ltd. The Company was selected as the ’preferred bidder’ for the Amakhala and the 95 MW Tsitsikamma wind power projects by South Africa's Department of Energy in 2012.
Cennergi has successfully tied up the entire debt requirement through a consortium of lenders, namely Standard Bank and International Finance Corporation with Standard Bank acting as the mandated lead arranger. The signing of financing agreements was completed on May 9th, 2013. The Company also completed pre-disbursement conditions under the financing agreements for availing Interim Disbursement and received the first loan disbursement on June 3rd, 2013. The project of approximately Rand 3945 million is being funded through a debt equity mix of 80:20. The project financing comprises of equity of Rand 789 million and Rand Term Loans of 3156 million.
The Company’s other 95 MW Tsitsikamma Community Wind Farm is also expected to achieve financial closure in a week. The wind projects will be located in Eastern Cape, South Africa and are expected to achieve commercial operations in 2016. Power Purchase Agreements and Implementation Agreements for these projects were signed with Eskom and Department of Energy respectively on May 9th, 2013.
"The signing of the financing agreements is a significant milestone for the project and we take this opportunity to thank our investors who have once again shown faith in Tata Power," said Anil Sardana, chairman of Cennergi and managing director at Tata Power.