AIM-listed Chariot, the Africa-focused energy group, has completed a significant financing and a strategic equity partnership primarily to fund its investment in two wind generation projects, Zen and Bergriver, in South Africa, which have just reached financial close. These projects are being led by Acciona Energia, the largest pure play renewable energy company in the world, with construction to commence imminently.
Chariot has incorporated a new subsidiary to consolidate its energy and trading operations in South Africa, as well as to enable this financing. Chariot Generation and Trading now holds a 24% stake in these projects, as well as a 34% effective economic interest in Etana Energy, the South African electricity trading platform.
Post commissioning, anticipated in mid-2027, Chariot will receive revenue streams both from the generation of electricity from these projects and from the subsequent trading of this power through Etana. The financing package consists of project finance debt combined with third-party equity investment and mezzanine debt, with no dilution at the Chariot Limited parent company level.
The financing includes 284 million dollars gross long-term non-recourse project finance debt provided by Standard Bank and Investec at the projects’ level, 17 million dollars strategic cash equity investment from the Mahlako Energy Fund I, managed by Mahlako A Phahla Financial Services, following which Chariot holds a 65% stake in Chariot Generation and Trading, with the Mahlako Fund holding the remaining 35%, and nine million dollars non-recourse mezzanine debt provided by Standard Bank.
Adonis Pouroulis, CEO of Chariot, commented: “We are delighted to have completed this financing which is multi-layered but carefully structured to enable our first entry into wind generation assets, a key part of our long-term plan as we continue to build our Renewable Power business. We now own a sizeable portion of two utility-scale infrastructure projects, all funded at the subsidiary level, and we are very pleased to welcome Mahlako as co-investors into this business.”
Source: energy-pedia.com