Tata Power said it has tied up funds for its 134-MW Amakhala Emoyeni wind farm in South Africa through its joint venture Cennergi.
The project costs Rand 3,945 million (about Rs 2,273 crore) with the debt equity mix at 80:20.
Cennergi, based in South Africa, is a 50:50 joint venture between South Africa’s Exxaro Resources and Tata Power.
Cennergi tied up debt through a consortium of lenders, Standard Bank and International Finance Corporation, with Standard Bank acting as the lead arranger.
The company was selected as ‘preferred bidder’ for the Amakhala and the 95-MW Tsitsikamma wind farms by the Energy Department of South Africa in 2012. The Tsitsikamma project is also expected to achieve financial closure in a week’s time. The wind projects are to be set up in Eastern Cape, South Africa and are expected to go online in 2016.
The power purchase and implementation agreements for the projects have been signed with Eskom and Energy Department of South Africa, Tata Power said.
Anil Sardana, Chairman, Cennergi, and Managing Director, Tata Power, said, “The signing of the financing agreements is a significant milestone for the project.”
Cennergi focuses on development, ownership, operation, maintenance, acquisition and management of electricity generation projects in South Africa, Botswana, and Namibia.
shanker.s@thehindu.co.in