Kinangop wind nails $150m
Kenya’s fledgling wind sector received another boost when the developer of the 61MW Kinangop Wind Park secured $150m of finance.
Standard Bank agreed the mixture of debt and equity with power producer Aeolus Kenya, which hopes to bring the Kinangop project online in mid-2015.
US manufacturer GE is slated to supply 38 1.6MW wind turbines to the project.
Standard Bank will underwrite $90m of the debt, while Norway’s Norfund and an unnamed “large Africa-focused international infrastructure investor” will provide $60m in equity, a statement said.
Financial close is expected within the next three weeks, Standard Bank added.
Kwame Parker, Standard Bank Group’s East Africa head of debt solutions and infrastructure finance, said: “With the rising demand for electricity in Kenya, this project will go a long way in providing cost-effective power to the economy.
“It is a good example of how to successfully bring private players into the renewable energy sector and serves as a good vote of investor confidence in the Kenyan economy.”
The project in central Kenya was first announced in 2011.
Aeolus Kenya already has a deal in place with state utility Kenya Power to sell output from Kinangop.
The boost for Kinangop comes days after Kenya’s 300MW Lake Turkana wind project saw a $27m bank guarantee approved for its transmission project.