Seriti Green, the renewable energy subsidiary of Seriti Resources, has made a significant stride in South Africa's energy landscape by delivering a 155MW wind farm project in Mpumalanga.
This milestone achievement was made possible through a long-term project financing solution facilitated by RMB as co-Mandated Lead Arranger, with a total project cost of R4 billion.
The Ummbila Emoyeni wind farm project represents the first phase of Seriti Green's ambitious plan to develop a portfolio of approximately 1GW of renewable energy.
This project not only contributes to addressing South Africa's energy crisis but also aligns with Seriti Resources' commitment to a just energy transition.
"As efforts to reach emissions reductions targets accelerate, we need to ramp up efforts to not only deliver alternative power solutions, but to assist affected communities by investing back into areas where mining has been the foundation of the economy," said Peter Venn, CEO of Seriti Green.
Seriti Resources, as the off-taker of power from this project through a long-term Power Purchase Agreement (PPA), will benefit from cost-effective and predictable renewable energy tariffs.
This strategic move will significantly aid their diversification and decarbonization efforts.
Working closely with all stakeholders, RMB applied an innovative equity financing solution that generated enhanced shareholder returns while significantly reducing the cost of capital for Seriti Green.
The learnings from this deal will help streamline the rollout of the remaining 745MW of projects for other off-takers.
"RMB is a long-standing partner and a trusted advisor for the Seriti Group and was an integral part of the formation of Seriti Green, of which we are also a minority shareholder," said Sindisiwe Mosoeu, infrastructure finance transactor at RMB.
This project marks a significant step forward in South Africa's sustainability journey and solidifies Seriti Green's position as a key player in the private power market.
As the country continues to prioritize renewable energy, projects like the Ummbila Emoyeni wind farm will play a crucial role in driving the transition towards a greener and more sustainable future.
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