White & Case Advises Absa on R6.6 Billion Renewable Energy Projects
Global law firm White & Case LLP has advised Absa Bank Limited (acting through its Corporate and Investment Banking Division), as exclusive mandated lead arranger, sole underwriter and sole hedge provider, on the R6.6 billion financing for Mainstream Renewable Power's two wind projects in the Northern Cape and Western Cape provinces in South Africa.
"White & Case is recognised as one of the world's leading law firms for project finance," said Johannesburg-based White & Case partner Craig Whitley, who led the Firm's deal team. "We have advised on two important projects in South Africa that are designed for socio-economic and environmentally sustainable growth, and are expected to generate an estimated R1 billion in community investment over the next two decades."
The projects, Kangnas and Perdekraal East, were awarded under Round 4 of the South African Department of Energy's Renewable Energy Independent Power Producer Procurement Programme, and will generate a combined 250 MW once completed. Construction is expected to commence in June 2018 and the projects should be operational by 2020.
Johan Koorts, Transactor, Resource and Project Finance at Absa, said: "The White & Case team provided invaluable guidance on all matters related to local law and guided lenders through an intricate set of legal considerations. Their support was integral in reaching financial close and providing a world class deliverable."
Equity investors included Lekela Power, OMLACSA, AREP, H1 and a community trust. Financial close was reached on June 5, 2018 with an approximate total amount invested of R6.6 billion.
The White & Case team in Johannesburg which advised on the transaction was led by partner Craig Whitley and included partner Quintin du Plessis, local partner Nathisha Maharaj and associates Matthew Richards, Marianna Naicker and Rosanna Bibis.
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