Standard Bank’s financing deal for Zimbabwe to benefit Namibia

Standard Bank, as mandated Lead Arranger, this week finalised a USD120 million debt package with Zimbabwe Power Company (ZPC), for the rehabilitation of existing power infrastructure at Kariba South Hydro Power Station and Hwange Thermal Power Station.

ZPC has a long track record of delivering electricity to power utility firm, NamPower through a long-term Power Purchase Agreement (PPA) between the two.

The PPA provides a long term and sustainable cash flow stream to ZPC, enabling the entity to raise further funding for new projects and now for the rehabilitation of existing infrastructure.

Regional Head: Investment Banking, at Standard Bank, Tandiwe Njobe, said as Lead Arranger for the facility, Standard Bank has partnered The Eastern and Southern African Trade and Development Bank (PTA Bank) to deliver the financing.

“This funding will assist in improving access to power for Zimbabwe and Namibia, and in the medium to long term, benefits of improved power supply and reliability will also extend to other Southern African Power Pool (SAPP) members. The proceeds will be applied to significant capital expenditure which will increase capacity and improve efficiency of the power stations,” she said

According to her it was important for the bank to support the regional power sector through this loan facility as it contributes to increasing power generation in a region which has an on-going deficit and a clear need for dependable and sustainable power supply.

“To make this transaction work we engaged with four regulatory bodies and key policy makers in four ministries in Namibia and Zimbabwe,” she added.

Meanwhile, the transaction was a continuation of a previous funding arrangement with ZPC, which went towards their contribution into the 300MW expansion at Kariba South Hydro Power Station.