South African electricity trading business now fully funded
AIM-listed Chariot, the Africa focused transitional energy group, has announced that Etana Energy, the South African electricity trading platform, has secured a US$55million (R1billion) guarantee finance facility alongside an equity investment of up to US$20million (R372million) from Standard Bank and Norfund. Standard Bank is the largest bank in Africa and Norfund is a Norwegian state investment fund focused on developing countries.
Etana is owned by Chariot (49%) and H1 Holdings (Pty) Limited (51%) and is focused on providing competitive, sustainable end-to-end energy solutions through the connecting of power generation projects to commercial and industrial users by wheeling electricity across South Africa's national grid.
Transaction highlights:
- US$55million of guarantee finance from Standard Bank on behalf of Etana, in addition to the US$100million secured from British International Investment and GuarantCo, previously announced on 4 December 2024, unlocks new renewable projects by providing developers with the revenue certainty needed to reach financial close and commence construction
- Up to US$20million equity investment to support Etana's growth and working capital requirements through to its first revenues
- Standard Bank and Norfund, in return for the guarantee and equity finance, are to be issued preference share capital in Etana which will give them an effective economic interest of 10% and 20% respectively. The preference share capital is redeemable at the option of the Ordinary Shareholders
- Funding package has enabled the first financial close of a solar generation project, the Mulilo 75MW Du Plessis Dam, with further renewable projects anticipated to close in the near term
Adonis Pouroulis, CEO of Chariot, commented:
'With this financing we welcome two further significant institutions, Standard Bank and Norfund, into the Etana business, a company which we co-founded. This transaction provides balance sheet support, combined with an equity investment which will unlock further generation projects, fund rapid, scalable growth and lead to material revenues from both Etana and potential future direct participation in generation projects. This clearly endorses the value that we see within the electricity trading platform which is looking to provide much needed long term, cleaner and competitive energy across South Africa.'
About Standard Bank
Standard Bank Group is the largest African bank by assets, operating in 20 African countries, four global financial centres and two offshore hubs. Headquartered in Johannesburg, South Africa, it is listed on the Johannesburg Stock Exchange, with share code SBK, and the Namibian Stock Exchange, share code SNB.
Standard Bank has a 162-year history in South Africa and started building a franchise outside southern Africa in the early 1990s. Their strategic position, which enables them to connect Africa to other select emerging markets as well as pools of capital in developed markets, and their balanced portfolio of businesses, provide significant opportunities for growth.
As at 30 June 2024, Standard Bank Group had 19.5 million clients, employed nearly 51,000 people (including Liberty) and had almost 1,200 points of representation and 5,500 ATMs on the African continent.
The group's largest shareholder is the Industrial and Commercial Bank of China (ICBC), the world's largest bank, with a 19.4% shareholding. In addition, Standard Bank Group and ICBC share a strategic partnership that facilitates trade and deal flow between Africa, China and select emerging markets.
For further information, go to http://www.standardbank.com
About Norfund
Norfund is the Norwegian Investment Fund for developing countries with a mission to create jobs and improve lives by investing in businesses that drive sustainable development. Owned and funded by the Norwegian Government, Norfund is the Norwegian Government's most important tool for strengthening the private sector in developing countries and reducing poverty.
Norfund's committed portfolio amounts to USD 3.6 billion, with investments across Sub-Saharan Africa, South/Southeast Asia, and Latin America. Additionally, Norfund manages the Norwegian Climate Investment Fund, which focuses on reducing or avoiding greenhouse gas emissions by investing in renewable energy in developing countries with large emissions from coal and other fossil fuel production. For more details, please visit: www.norfund.no
About Etana Energy
Etana Energy is a majority black-owned licenced electricity trader that supplies electricity generated by renewable energy projects to businesses in South Africa, using the national electricity grid. Etana's customers benefit from certified low-carbon electricity at tariffs competitive with Eskom or municipal supply, forward price certainty, flexible contracting terms and qualifying B-BEEE expenditure. For more information, visit: www.etana.energy
Source: Chariot
