Standard Bank Greenlights R2.8bn Funding for Seriti’s Wind Initiative

Standard Bank has achieved financial closure for the 155 MW Ummbila Emoyeni 3 wind project, representing the second phase of Seriti Green’s wind energy program in Mpumalanga, as stated in an announcement on Tuesday.

The bank acted as a joint mandated lead arranger, contributing R2.45 billion to a total debt funding of R4.9 billion. In addition, Standard Bank’s investment, alongside support from shareholders, provided an extra R330 million in equity for the project, according to the statement.

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This financial package paves the way for one of South Africa’s largest privately-owned wind projects, expected to become operational by late 2027.

This follows the successful completion of the initial phase of Ummbila Emoyeni in 2024, raising Seriti Green’s total installed wind capacity to 310 MW. Plans are in place for an additional 465 MW of wind generation.

The energy generated by this facility will be sold exclusively under a long-term offtake agreement to the Energy Exchange of Southern Africa (Exsa), a subsidiary of Remgro.

This initiative marks Exsa’s first venture into utility-scale energy procurement.

Supporting South Africa’s Just Energy Transition

Seriti Green, a subsidiary of coal producer Seriti Resources, was founded in 2021 as part of the group’s commitment to a just energy transition.

In 2022, Seriti Resources, which is privately held by four BB-BEE shareholder groups, entered the clean energy sector by acquiring a majority stake in Windlab Africa’s wind and solar assets.

Standard Bank states that the second phase of the project is anticipated to create over 800 jobs during its construction and provide skills training opportunities for youth aspiring for future careers.

Read: Mpumalanga Secures a Significant R25bn Seriti Renewable Energy Project [2024]

Seriti Green CEO, Peter Venn, emphasizes the strategic significance of this partnership. “Standard Bank has been the primary financier for all of Seriti Green’s projects thus far. We are eager to collaborate on bringing more mega-projects to life.”

Standard Bank’s energy and infrastructure finance executive, Nicholas Knott-Craig, expressed pride in working with Seriti Green to “realize” one of the country’s largest wind farms.

“Through this transaction, we are directly contributing to the transformation of South Africa’s energy landscape by facilitating the establishment of renewable energy facilities at the core of South Africa’s energy sector—Mpumalanga,” he adds.

Listen: Seriti Green Launches a Reusable Wind Farm Project in Mpumalanga

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