International law firm Norton Rose Fulbright has concluded a R3.5bn financing arrangement for five wind farms to be built by multinational power producer Enel Green Power. The financing, which will treat the five projects as one, is yet another way to reduce the cost of green power projects, which already produce significantly cheaper electricity than mega coal-fired stations Medupi and Kusile. "The lenders, Absa and Nedbank, took on a portfolio of five wind farms, instead of looking at each one," said Jackie Midlane, head of banking and finance at Norton Rose, who advised the transaction for Enel. With all projects under a holding company, loan facilities will be provided to that one vehicle and on-lent to the wind projects. The result was better financing terms, assisting the power producer in offering a competitive tariff. The wind project is part of the fourth round of the government’s Renewable Energy Independent Power Producers Programme. The cost of producing renewable power ...
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