RMB assists Harmony in adding 30MW to the grid

MEDIA RELEASE

2 JUNE 2022

RMB reaches financial close on three solar PV plants to supply renewable energy to Harmony Gold’s mines over 15 years

• Through a combination of wheeling and behind the meter solutions Harmony has effectively added 30MW of installed capacity to the grid
• One of the first IPP projects to close under the recently amended legislation to facilitate the growth of the private power industry in South Africa
• Paves the way for companies to become more power independent, reduce emissions and procure predictably priced power

RMB was appointed as sole mandated lead arranger by the project sponsors, African Infrastructure Investment Managers, African Clean Energy Developments and Mahlako Energy Fund to provide a bespoke debt funding package for the transaction. RMB also played the role of account bank and hedge provider. The projects are some of the first and largest renewable energy private power solutions in South Africa to date.

In terms of the deal, the Independent Power Producers (IPPs) will sell renewable energy to Harmony through long term Power Purchase Agreements (PPAs), at cost-effective tariffs that will escalate at a predictable price path for the next 15 years - while at the same time generating an acceptable return for the shareholders of the IPPs.

David Jones, Transactor at RMB said: “The project needed to deliver on Harmony’s sustainability and decarbonisation commitments. By providing a long-term funding package to the IPP we were able to unlock significant value for Harmony in terms of minimising the tariff they will end up paying for this green energy.”

The project will also reduce scope 2 carbon emissions for Harmony and against the backdrop of deregulation of the energy sector in South Africa, represents a big step forward for our mining and private power industries in South Africa.

“The procurement of private power by Harmony aids not only in diversifying their own energy sources but has the dual benefit of improving the overall energy shortage in South Africa. By building 30MW of generation capacity for Harmony, the project liberates 30MW of existing capacity from Eskom to be used by other parts of the country that need it,” added Amber Bolleurs, Transactor at RMB.

End

Contact:

Kate Kelly l RMB l kate.kelly@rmb.co.za