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Financial Advisory in South Africa

Suntrace assisted a local developer in financing a utility scale CSP project in South Africa under the Renewable Energy Independent Power Producer Procurement Program (REIPPPP).

Among other requirements, the project needed to have the financing committed in order to qualify as bidder in the REIPPPP of the Department of Energy.

Suntrace's scope of work encompassed the financial structuring and modelling, fundraising strategy, project documentation for financial institutions and the negotiation and arranging of terms and conditions for long-term debt finance. At the time of bidding, the client had underwritten term sheets from a consortium of private and development banks for an amount equivalent to USD 500m.

Suntrace helped to structure the financing, tailor-made to the specific case, wrote the information memorandum and assisted in setting up the data room. After initial bank market sounding, Suntrace led the bank negotiations for two consecutive bidding rounds. The project company (the client) had a fully underwritten term sheet commitment for 75% of the total investment amount (approx. USD 500m) with tenors up to 18 years in local currency (ZAR).