Standard Bank partners with InnoVent SAS to fund NAD1.9 billion for Namibia’s Diaz wind project
Standard Bank, the biggest bank in Africa by assets, has partnered with InnoVent SAS to fund the development and construction of the Diaz Wind Project, Namibia’s largest wind energy farm.
The bank has been appointed as the sole mandated lead arranger and underwriter of the senior debt and ancillary facilities for the project. Standard Bank will provide NAD1.2 billion towards the construction cost of the project.
The Diaz Wind Project is a 44-Megawatt (MW) wind energy farm being developed and constructed near the town of Luderitz in Namibia by InnoVent SAS. The project is the second and currently the largest wind energy generation project in Namibia and is in line with the country’s power procurement plan to reduce the country’s dependence on imports whilst developing its own renewable resources.
“We have collaborated with InnoVent SAS in the development of this exciting project focused on further enabling Namibia’s energy independence. Through our involvement in this project, we have managed to curate financial solutions that are unique to the project’s requirements, while leveraging the opportunity to tangibly build on our commitment to sustainability with wider benefits for the broader Namibian populace,” says Pius Alweendo, Vice President: Energy and Infrastructure Finance in Investment Banking at Standard Bank.
Standard Bank has built a strong track record in structuring and funding energy projects in Namibia, and it has played a key role in funding the country’s first large scale solar IPP, first large-scale wind IPP and the national fuel storage facility.
In Namibia, the InnoVent Group operates a total of 25MW of renewable energy projects, consisting of four solar PV plants, and one wind farm. In addition, they currently have a total of 93MW of projects in construction.
“As a company that is well versed in the African market especially the renewable energy economy, Standard Bank is a natural fit for us to partner with in this project. The collaborative effort in driving Namibia’s energy independence and the country’s energy transition is a joint value that has enabled our vision in making a success of the project,” says Grégoire Verhaeghe, President of InnoVent SAS.
“We are pleased to have pioneered the execution of this development under unique circumstances in an unprecedented area. We are excited to have achieved this milestone for the country after having supported this project for many years, testament to Standard Bank’s perseverance and commitment to driving Namibia’s growth,” Marco Triebner, Standard Bank’s Head of Investment Banking, Namibia.
Namibia remains reliant on imports from its neighbouring countries for electricity supply. With abundant wind and solar resources, the country aims to increase its domestic renewable energy capacity in its efforts towards energy self-sufficiency.
Once in operation, the Diaz Wind Project will generate 226,969 MWh of clean energy per annum, displacing approximately 177,000 Tons of CO2 annually, whilst allowing for a stable, viable and complimentary source of energy in Namibia’s supply mix.
“As we remain committed to our purpose, driving Africa’s growth, we are incredibly proud to be associated with advancing Namibia’s journey towards energy security,” concluded Alweendo.