Tata Power ties up funds for 135 MW wind proj in South Africa
New Delhi: Tata Power Wednesday said funds have been tied up for the 135 MW Amakhala Emoyeni wind project worth over Rs 2,262 crore in South Africa.
The wind energy project is being executed by Cennergi, an equal joint venture between Tata Power and South Africa's Exxaro Resources.
"The project of approximately Rand 3,945 million (over Rs 2,262 crore at current exchange rate) is being funded through a debt equity mix of 80:20. The project financing comprises equity of Rand 789 million and term loans of Rand 3,156 million," Tata Power said in a statement.
Cennergi has tied up the entire debt requirement through a consortium of lenders -- Standard Bank and International Finance Corp.
The signing of financing agreements was completed on May 9 and the first loan disbursement was received on June 3.
Cennergi was selected as the preferred bidder for the 135 MW Amakhala as well as 95 MW Tsitsikamma wind farm projects by the South African government's Department of Energy in 2012.
"The company's other 95 MW Tsitsikamma Community wind farm is also expected to achieve financial closure in a week," the statement said.
Both the projects, to come up in Eastern Cape, South Africa, are expected to achieve commercial operations in 2016.
"The signing of the financing agreements is a significant milestone for the project and we take this opportunity to thank our investors who have once again shown faith in Tata Power," Chairman of Cennergi and Managing Director of Tata Power Anil Sardana said.
Cennergi is into investigation of feasibility, development, ownership, operation, maintenance, acquisition and management of electricity generation projects in South Africa, Botswana, and Namibia.
The initial project pipeline focuses on renewable energy projects in Southern Africa.