This award, recognised by industry players for innovativeness and scale, was presented to the DBSA on the night of February 6 2019 in London, United Kingdom by Project Finance International (PFI), a London-based institution that organises the global awards.
The event organisers said that the achievement signified the DBSA’s growing involvement in energy project financing and raises the institution’s profile among its peers in the industry.
The PFI panel of judges said that the DBSA beat other strong contenders primarily because of the successful financial closure and implementation of several projects it financed in Round Four of the Renewable Energy Independent Power Producers Programme (REIPPP).
“This award is significant because the deals survived contractual delays in the signing of the Power Purchase Agreements (PPAs),” says Mr. Mpho Mokwele, DBSA’s Head of Project Finance.
Under Round 4 of the REIPPP the DBSA provided project finance for over 14 renewable energy projects including landmark projects such as the Sirius Solar, Dyasons Klip 1 and Dyasons Klip 2 Photovoltaic (PV) projects developed by Scatec Solar. The Scatec Solar projects were funded through a combination of equity and debt raised from the DBSA (ZAR1.1 billion), commercial banks and local asset managers. Other notable projects include the 140MW Roggeveld wind project for which the DBSA provided ZAR951 million in debt funding and the 102MW Copperton wind project, for which the DBSA provided ZAR1.2 billion in debt funding.
These are some of the projects that reached financial close following the signing of PPAs in April 2018 at a function presided by the Minister of Energy, Mr. Jeff Radebe.
From an energy portfolio perspective, the DBSA is currently involved in 33 renewable energy projects for which the development investment is approximately ZAR17 billion. The Bank has also created a project development facility to assist with bankable feasibility studies. More notably, the DBSA has enabled broad based black economic parties and local community trusts to participate at an ownership level in the projects. Black South Africans own on average 31% of projects that have reached financial close.
“We are honoured and humbled to have won this award. The DBSA remains committed to the growth of renewable energy, promotion of local ownership and community involvement which are all crucial to long term success and sustainability,” said Ms Lucy Chege, Head of Energy, Environment and ICT at the DBSA.
Notes to Editors:
About Development Bank of Southern Africa
The Development Bank of Southern Africa (DBSA) is a South African state-owned enterprise and a leading development finance institution working across the African continent. Established in 1983, its primary purpose is to promote economic and social development as well as regional integration through infrastructure investment and development.
For further information contact: