Prescient Investment Management (PIM) has reaffirmed its credentials as one of the leading funders of renewable energy infrastructure projects in South Africa with a sizeable equity finance facility to Reatile Renewables Virginia (RF) Proprietary Limited (Reatile).
The transaction was facilitated through thePrescient Clean Energy and Infrastructure Debt Fund (CEIDF). The funding is being utilised to allow Reatile to acquire 31.5% of Ursa Energy (RF) Pty Ltd – a 240MW Solar PV farm which forms part of bid window 6 of the Renewable Energy Independent Power Producer Procurement Programme (REIPPPP).
Commenting on the transaction, PIM Portfolio Manager *Luzuko Nomjana said: “The Prescient Clean Energy and Infrastructure Debt Fund was developed specifically to help bridge the infrastructure gap and contribute towards generating more vibrant economic growth in South Africa. This is the first project we have concluded with the Reatile team and we look forward to further transformative transactions down the line with them.”
Prior to this transaction, the CEIDF had committed over R4 billion to 30 renewable energy projects and infrastructure opportunities. The fund has contributed to an additional 2.2 gigawatts of clean energy – the equivalent of one million average South African homes.
The infrastructure investment gap in South Africa is estimated to be R4.8 trillion by 2030 and such opportunities in low- and middle-income countries including South Africa are in demand from investors seeking alternative investment opportunities. Despite the attractiveness of the sector, many projects have been hampered by corruption, mis-management, lack of expertise, fragmented planning and coordination and political instability. Asset managers in turn are being challenged to develop investment opportunities which mitigate these risks, offer risk commensurate investment returns and deliver sustainable social impact.
Conway Williams, Head of Credit at PIM concludes: “Within our Prescient Clean Energy and Infrastructure offering, we believe it’s our responsibility to ensure that the capital we are entrusted with leads to deals that enhance the lives of South Africans, benefiting the economy, the environment, and society as a whole. Therefore, it’s especially rewarding for us to support initiatives like this one, where we can generate commercial returns for our clients while making a tangible positive impact.”
