Nedbank CIB sets a powerful precedent by leading the financing of Envusa Energy

Nedbank Corporate & Investment Banking (CIB) has taken a pivotal role in the landmark portfolio financing of the first phase of the Envusa Energy project.

Envusa Energy — a jointly owned renewable energy venture between mining giant Anglo American and global renewable energy independent power producer, EDF Renewables — is set to transform the energy landscape in Southern Africa.

Nedbank CIB led the structuring, negotiation and execution of the Envusa Energy transaction. The bank was entrusted by both Anglo American and EDF Renewables to co-ordinate and manage various workstreams leading to the financial closure of this transaction.

As a co-mandated lead arranger, lender, hedge provider, co-ordinating bank, technical bank, insurance bank, facility agent and account bank for this multibillion-rand deal, Nedbank CIB’s involvement underscores its commitment to sustainable and inclusive growth across the continent. 

Envusa Energy’s ambitious goal is to establish a renewable energy ecosystem with an expected generation capacity of about 3-5GW from wind, solar and [energy] storage projects by 2030. This initiative represents one of the largest private sector decarbonisation efforts in the region.

This first phase of the Envusa Energy project includes the Umsobomvu wind project (140MW), the Hartebeesthoek wind project (140MW) and the Mooi Plaats solar project (240MW), with a total capacity of 520MW. These projects will directly benefit Anglo American’s mines, smelters and refineries, serving as off-takers. 

This multibillion-rand deal signifies Anglo American’s inaugural step towards decarbonising its operations in Southern Africa. By backing Envusa Energy, Anglo American affirms its commitment to reducing its carbon footprint and adopting sustainable energy alternatives. 

Nolitha Fakude, chair of Anglo American’s management board in SA and chair of Envusa Energy, expressed her delight at the strides made in priming Envusa Energy for enduring success as a leading renewable energy entity in the country. The attainment of financial closure for these three premium renewable energy projects is a pivotal moment in Anglo American’s global decarbonisation efforts and it strengthens SA’s resolve for a robust, resilient and clean energy future. 

“Collaborating with Anglo American to apply our extensive global expertise in renewable energy infrastructure development, design and delivery has been immensely rewarding. With Envusa Energy being developed as a jointly owned venture with Anglo American, we have solidified our long-term commitment to SA’s transition to clean energy,” said Tristan de Drouas, CEO of EDF Renewables in SA.

These renewable energy projects are poised to yield substantial savings on electricity costs for Anglo American's operations, relative to their current tariffs.

As the Envusa Energy project progresses, it's expected to have a significant positive impact on local communities across Southern Africa. The energy transition offers a unique opportunity to generate substantial new economic opportunities as part of SA’s journey towards an inclusive, sustainable and low-carbon economy.

Envusa Energy is exploring BEE and community partnership models that will enable businesses and host communities to share in the benefits created by the development of the renewable energy ecosystem along its value chain.