Seriti Green to deliver 155MW of sustainable power

MEDIA RELEASE

5 April 2024

Seriti Green’s power move: first 155MW renewable energy plant to be delivered with funding facilitated through RMB

Seriti Green, the renewable energy subsidiary of Seriti Resources, has secured a long-term project financing solution with RMB as co-Mandated Lead Arranger that will enable the Independent Power Producer (IPP) to deliver 155MW of sustainable power through a wind farm project in Mpumalanga, with a total project cost of R4bn.

This project represents the first phase of a portfolio that will amount to approximately 1GW of renewable energy, which will not only help to address South Africa’s energy crisis but will also contribute positively toward Seriti Resources just energy transition plans. It is also one of the first renewable energy projects to be developed in the province, marking a significant step forward in the country’s sustainability journey.

“As efforts to reach emissions reductions targets accelerate, we need to ramp up efforts to not only deliver alternative power solutions, but to assist affected communities by investing back into areas where mining has been the foundation of the economy. Our vision is to achieve just transition by delivering world-class renewable energy projects that unlock sustainable value for generations to come, and the delivery of the first project in our pipeline is a significant milestone,” says Peter Venn, CEO of Seriti Green.

Seriti Resources, as the buyer of power from this project through a long-term Power Purchase Agreement (PPA), will benefit from renewable energy with a cost-effective tariff and predictable price path. This will significantly assist in their diversification and decarbonisation efforts.

“We are excited about Seriti Green, our partnership with RMB and Standard Bank, our journey to decarbonization, and our strategic position in the global energy space.  Looking ahead, we hope to mature along our ESG journey, notwithstanding the challenges we expect to encounter over time,” says Mike Teke, Group CEO of Seriti Resources.

Working with all parties involved, RMB applied a first to market equity financing solution that generated enhanced shareholder returns in a structure that resulted in significant saving on the cost of capital for shareholders creating significant value for the client. The learnings from closing the deal will help to streamline the rollout of the remainder of their 745 GW for other off takers.

“RMB is a long-standing partner and a trusted advisor for the Seriti Group and was an integral part of the formation of Seriti Green, of which we are also a minority shareholder. This partnership has been instrumental in delivering on the first phase of a renewable energy journey that will see Seriti Green become a meaningful player in South Africa’s private power market,” says Sindisiwe Mosoeu, infrastructure finance transactor at RMB.

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