4th December 2024, Lusaka, Zambia– CEC Renewables, a subsidiary of the Copperbelt Energy Corporation (CEC), has announced the issuance of its second Green Bond tranche, valued at USD 96.7 million.
This milestone comes exactly one year after the issuance of the first tranche in2023, showcasing CEC's steadfast commitment to addressing Zambia's energy needs through innovative financing solutions and renewable energy projects. The proceeds from this second tranche will finance the second phase of CEC Renewables’ Itimpi Solar PV Plant, which is expected to contribute 136MW to the Company’s renewable energy portfolio. This addition will bring CEC Renewables’ total solar generation capacity to an impressive 236 MW, reinforcing its role as a key player in Zambia’s renewable energy landscape.
Cygnum Capital acted as lead arranger for the issuance. The tranche, valued at USD 96 million, attracted robust investor interest, achieving a 2.3x oversubscription. Investors in the second tranche included Stanbic Zambia who acted as the Lead Underwriter, FMO, EAAIF, ZCCM, and the ALCB Fund
James Doree, representing Cygnum Capital, emphasised the value of CEC establishing its green bond programme in 2023 and continuing to tap the market: “CEC Plc is a trailblazer in Africa’s capital markets. As the leading private operator in the Southern Africa Power Pool (SAPP) and key supplier of clean energy to the mining sector, CEC-R has now shown that it can bring commercial investors from the region together with international institutions to finance new renewable energy capacity. This green bond programme can provide a template for future issuance and issuers.”
