Mainstream Renewable Power Signs Landmark Africa Clean Energy Equity Funding
LONDON, United Kingdom, June 23, 2016/ — Global renewable energy developer Mainstream Renewable Power has signed $117.5m
The deal, which is subject to shareholder approval, provides equity funding for the Lekela Power platform, a joint venture with the global pan-emerging market private equity firm Actis. The funding package will help Lekela meet its goal of constructing over 1,300MW of badly needed new power capacity in Africa by 2018, while addressing the challenge of climate change.
Speaking at the signing of the transaction at The African Energy Forum in London, Mainstream Renewable Power CEO Eddie O’Connor said, “Developing Africa’s power infrastructure, giving millions of people access to power and enabling the continent’s economic growth is one of the greatest challenges of our time. Renewable energy is the quickest and most cost effective solution to achieve this and Mainstream is dedicated to being the leading vehicle in delivering this on the ground.”
“The IFC ALAC Fund looks forward to working with Mainstream Renewable Power to support the growth of Africa’s power infrastructure on the continent, an important pre-requisite of economic and social development,” said Eileen Fargis, Co-Head, IFC African, Latin American and Caribbean Fund (ALAC).
“The IFC Catalyst Fund is very pleased to support this transaction. We look forward to supporting the growth of the Lekela Power platform and its expansion goals in the region,” said Reyaz Ahmad, Head, IFC Catalyst Fund.
The deal will allow Lekela to continue to build its pipeline of wind and solar projects in Africa.
Mainstream and Lekela are helping to fulfil the objectives of a series of key international initiatives, including the Obama Administration’s Power Africa, which aims to add 30,000MW of cleaner power generation through government and private partnerships, and the UN’s Sustainable Energy for All, which seeks to achieve universal access to power by 2030. Energy poverty has been recognised as one of the key challenges for Africa, with an estimated two thirds of people in Sub-Saharan Africa having no regular access to electricity.
First Avenue Partners acted as global placement agent for the transaction.
Simmons & Simmons acted as legal counsel to Mainstream and Norton Rose Fulbright for the investor group.