RMBconcludesfirsteverrefinancingundertheREIPPPprogrammefortheBokpoortCSPProject

 

The challenge

Bokpoort CSP is a 50MW concentrated solar power (CSP) plant, located near Groblershoop in the Northern Cape province of South Africa, with up to 9 hours of thermal energy storage.   Whilst CSP technology is inherently more complex than some other renewable energy technologies, Bokpoort CSP broke records in October 2020 by being the first renewable energy facility on the continent to complete 13 days of continuous round the clock operation, which is especially important for the stability of energy supply in the country.

The project closed in August 2013 under Round 2 of the Renewable Energy Independent Power Producer Procurement Progamme (REIPPPP) initiated by the South African Department of Energy and began operating in March 2016.

In May 2020, the Department of Mineral Resources and Energy, through the IPP Office, invited all projects that had closed under Rounds 1 – 3.5 of the REIPPPP to refinance their respective project debt, with a view to reducing tariffs for these early round projects which have subsequently de-risked, and passing this benefit on to the consumer.

The RMB solution

As part of a consortium of six lenders, RMB acted as co-Mandated Lead Arranger and lender for the senior Jibar-linked and senior CPI-linked term facilities, contributing an aggregate amount of R820m for the Bokpoort CSP refinance. This is the first REIPPPP project refinancing to be undertaken, increasing the overall debt package from R3.5bn to R5.5bn.

The refinancing gain will be shared with Eskom through a lower tariff, delivering savings of ca. R800m to the consumer over the remaining 13 years of the Bokpoort project’s Power Purchase Agreement.

Proven client results

The client benefitted by creating value for shareholders, as well as facilitating the building of a small additional PV plant on the site to be used for internal power consumption thereby facilitating the export of additional power from the Bokpoort CSP Plant.

The deal is particularly significant in the context of government's recently gazetted plans to increase the country’s reliance on affordable, reliable and sustainable electricity through solar and other independent power producer (IPP) projects. Our participation in this first REIPPPP refinancing, alongside the conversion of existing Jibar-linked debt to CPI-linked debt in the Project, further reinforces RMB’s position as a leading infrastructure sector solutions bank and CPI lender and demonstrates our willingness to help make the country’s electricity more affordable.

Client	Bokpoort CSP Power Plant (Pty) Ltd
Size of the deal	R5.5-bn
Sector	Renewable energy
Capabilities	Infrastructure finance REIPPPP Refinancing
RMB's role	Co-mandated lead arranger Lender in senior Jibar-linked and senior CPI-linked term facilities
Country	South Africa