London-based EAAIF pledges $19mn to help build 136MW solar project in Zambia

The Emerging Africa and Asia Infrastructure Fund (EAAIF) has pledged $18.9mn to CEC Renewables' $96.7mn green bond to build a 136-megawatt (MW) solar farm in Zambia.

The issuance is part of a $200mn medium-term note programme that was structured by EAAIF and Cyngum capital in 2023, which also resulted in the issuance of the southern African nation's first green bond of $53.5mn in 2023.

That issuance opened the way to local and regional private investors, resulting in the $96.7mn second tranche which was facilitated by Cygnum Capital to develop the Itimpi solar project in Copperbelt region west of the country.

Both bonds, said EAAIF in a release on December 13, will support CEC Renewables, a unit of Copperbelt Energy Corporation, to increase its total solar generation capacity to 230 MW in Zambia, to be sold to local businesses and the state-owned power utility, Zesco.

The project will save about 126,000 tonnes of carbon dioxide equivalent, create 800 jobs and provide power to 146,000 customers in a country that is facing a severe electricity shortage caused by low output from its hydropower plants following a drought.

“Our continued support for CEC Renewables through the green bond is testament to our commitment to develop Africa’s capital markets, providing funding solutions to dynamic companies that will drive innovation and growth within key sectors. The renewable energy that will be provided to Zambia as a result of this issuance will help improve the lives of communities and local businesses who are currently facing an energy crisis,” said Thanzi Ramukosi, Investment Specialist, Ninety One, the fund manager of EAAIF.