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South Africa's Standard Bank has signed a three-year loan facility for US$70mn with independent power generation company Globeleq
According to reports, multinational law firm Linklaters advised Globeleq to proceed with the loan, which will be utilised to enhance Globeleq's power asset base and position the company as a major private power player in sub-Saharan Africa.
Paul Shang, global head of investment banking at Standard Bank, said, "The Globeleq Africa transaction has demonstrated its expertise in the African power and infrastructure sector."
Authorities at Linklaters added that Globeleq currently has more than 1200MW of power capacity in operation or under construction in five countries in sub-Saharan Africa, including South Africa. The company recently completed the acquisition of majority interest in more than 300MW of generation capacity in Cameroon.
Mikael Karlsson, CEO of Globeleq, stated that the company would continue to jointly explore and develop renewable energy projects in South Africa, having already developed 100MW of solar photovoltaic (PV) capacity and a 138MW wind farm in partnership with Mainstream Renewable Power.
However, Globeleq is also in pursuit of gas-fired generation opportunities, independently of this partnership.