Norfund, the Norwegian investment fund, has announced a significant equity investment of $75 million in Mulilo Energy Holdings, a prominent South African Independent Power Producer (IPP) focused on renewable energy. This investment, which represents a minority stake in Mulilo, is expected to bolster the company’s efforts in enhancing South Africa’s renewable energy capacity.
Mulilo Energy Holdings is recognized for its extensive portfolio, which includes 448 megawatts (MW) of operational solar and wind energy assets. The company also boasts a robust development pipeline that exceeds 30 gigawatts (GW), incorporating various renewable and battery energy storage projects, with 765 MW currently under construction.
The partnership between Norfund and Mulilo is seen as a strategic move to support the transition to renewable energy in South Africa, a country that has been increasingly focusing on sustainable energy solutions amid challenges related to energy supply and climate change. Mark Davis, Executive Vice President of Renewable Energy at Norfund, expressed enthusiasm about the investment, highlighting the alignment with the Norwegian Climate Investment Fund’s mission to foster sustainable energy initiatives.
Standard Chartered served as the sole financial advisor for Norfund during this transaction, providing a range of services including valuation analysis, due diligence coordination, and transaction structuring. The bank’s involvement underscores its role as a key player in facilitating cross-border mergers and acquisitions, particularly in the clean technology sector. Arnaud Bouill?, the Head of Clean Tech & Environment M&A for Europe and Africa at Standard Chartered, noted that this transaction marks the fifth in the renewable energy sector for the bank in Africa this year, reflecting a growing trend of international investment in the region’s energy infrastructure.
This investment is part of a broader movement towards renewable energy in South Africa, where the government has set ambitious targets for increasing the share of renewables in the energy mix. As the country navigates its energy transition, partnerships like that of Norfund and Mulilo are crucial for driving innovation and expanding the renewable energy landscape.
This article was submitted via the World of Renewables press desk.
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