Standard Bank and Mulilo: Powering South Africa's energy transition

We acted as the sole lender and agent in this landmark transaction, providing an innovative equity holdco facility. Unlike traditional project-specific financing, this ZAR7 billion facility has been uniquely developed and tailored to provide broader support for Mulilo’s strategic expansion, including equity participation and guarantees. We see this as a demonstration of our commitment and leadership in delivering corporate energy finance solutions and advancing green infrastructure funding across Africa while accelerating renewable energy financing.

This flexible structure empowers Mulilo to execute on a robust pipeline spanning the Renewable Energy Independent Power Producer Procurement Programme (REIPPPP), battery energy storage systems (BESS) and private off-take agreements with aggregators and traders. Earlier this year, Mulilo was named as the preferred bidder for 4 projects to develop 493MW / 1 972MWh of new battery storage capacity in the Free State, in addition to the 9 other large-scale renewable energy projects progressing towards financial close. 
As Standard Bank Corporate and Investment Banking Head of Power Rentia van Tonder notes, “This facility is not just about financing; it’s about adding to much-sought energy security through a partnership between organisations that value Africa’s long-term sustainable growth. It enables Mulilo to scale, deliver on its pipeline and contribute meaningfully to job creation, regional development and energy security.”

South Africa faces a critical need for enhanced energy security and an accelerated transition to sustainable power sources. Traditional project-specific financing models often present limitations for rapidly expanding independent power producers such as Mulilo, who require flexible capital to pursue a diverse and robust pipeline of renewable energy projects. The ability to scale quickly and efficiently is paramount to addressing the nation's energy demands and fostering economic growth.

Mulilo, established in 2008 and backed by Copenhagen Infrastructure Partners, has built a development pipeline exceeding 40GW, reinforcing its role as a key contributor to South Africa’s energy transition. 
Mulilo Chief Executive Officer Jan Fourie says, “Securing the R7 billion facility marks a pivotal milestone for the company and affirms the bank’s confidence in our strategy. Through this collaboration, we can accelerate renewable energy financing that will drive South Africa’s transition and deliver sustainable value to communities and shareholders.”

This facility is set to significantly contribute to job creation, regional development and, crucially, South Africa’s clean energy investment and future security. Our commitment, sector expertise and innovative approach ultimately position us as the most suited financier among other competing institutions. This partnership enables Mulilo to scale, deliver on its pipeline and provide clean, affordable energy to millions of South Africans: a true investment in the country’s sustainable energy future.