GreenYellow, Axian, Societe Generale, GuarantCo and African Guarantee Fund Closes $19 Million Transaction to Support Debt Funding of Largest Solar Plant in Madagascar


GreenYellow, an operator of green energy in Madagascar, Axian, an impact-oriented Pan-African group with holdings in various sectors and countries, Societe Generale, GuarantCo, the guarantee arm of the Private Infrastructure Development Group (PIDG) company and African Guarantee Fund have closed a MGA 73.8 billion (EUR 16.2 million/USD 19 million) transaction to support the debt funding of the 20 MW solar photovoltaic power plant in Ambatolampy. This power plant is the largest in the country and was operated and built by GreenYellow. It has been operational since 2018.


To make this transaction possible, Axian acquired 51 percent of the solar plant’s shares in June 2020. Societe Generale, acting as sole arranger and co-lender with BNI and BMOI, raised EUR 16.2 million / USD 19 million debt. GuarantCo and the African Guarantee Fund provided additional support with guarantees of MGA 36.9 billion (c. USD 9.3 million) and MGA 14.8 billion (c. USD 3.8 million) respectively.

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In addition to injecting capital into the Ambatolampy solar plant, the transaction will also empower GreenYellow and AXIAN partnership to accelerate investments in new greenfield projects in Madagascar, and make them a key contributor to the country reaching its objective of an 80 percent renewable energy mix by 2030 and improving its energy security.


Madagascar’s energy mix is presently dominated by heavy fuel oil and diesel. The government-owned, vertically-integrated utility that operates most of the country’s power grid requires the private sector’s involvement to address the chronic shortage of electricital access. Private developers, such as GreenYellow and Axian, will not only expand access to renewable energy in Madagascar but they will also offer a more stable supply of energy, allowing the country to progress greatly toward the United Nations Sustainable Development Goal 7 (affordable and clean energy).


The plant is also a major contributor to the reduction of carbon emissions in Madagascar, reducing emissions by 17,000 tons of CO2 per year.

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The transaction will thus help provide access to clean, affordable and reliable energy to households and companies, create local jobs and stimulate wider economic development.

Otmane Hajji, CEO at GreenYellow, said “With this transaction and this new partnership, GreenYellow is reinforcing its strong presence in Madagascar and in the Indian Ocean, where we are already the first producer of clean energy. The refinancing of the Ambatolampy power plant will allow GreenYellow and Axian to go further and finance the development of future renewable energy projects in Madagascar.”

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