Emerging Africa Infrastructure Fund Supports Zambia’s Pioneering $53.5 Million Green Bond For Solar Infrastructure Development

The Emerging Africa Infrastructure Fund (EAIF), a Private Infrastructure Development Group Company (PIDG), has pledged to de facto underwrite $50 million of Zambia’s historic $53.5 million green bond. Serving as the cornerstone investor, EAIF supports the bond issued by CEC Renewables (CECR), an affiliate of Copperbelt Energy Corporation Plc. (CEC), a private energy company listed on the Lusaka Securities Exchange (LuSE) since 2008.

The funds raised will propel the development of CECR’s clean energy portfolio, featuring two solar PV plants with a combined generating capacity of nearly 100MW. This initiative aligns with CECR’s broader goal of delivering over 200MW of renewable energy, contributing significantly to Zambia’s energy sector diversification.

Zambia, heavily reliant on hydropower, faces the impact of climate change on energy production due to rising temperatures and unpredictable rainfall. CECR’s green bond, set to be listed on the LuSE, signifies a pivotal step in advancing the country’s energy transition and fostering momentum in Zambia’s emerging solar power sector.

The issuance, structured by Cygnum Capital through private placement, has garnered interest from local capital markets, emphasizing Zambia’s commitment to sustainable energy advancement. Local banks and pension funds have played a crucial role in financing key infrastructure projects across the country.

EAIF’s integral role in underwriting the green bond, scaled back to $20 million following robust participation from private sector investors, reinforces its commitment to driving sustainable energy initiatives across the African continent. EAIF has previously played a crucial role in supporting infrastructure projects, including West Africa’s first-ever asset-backed security.

Paromita Chatterjee, Investment Director at Ninety One, the fund manager of EAIF, expressed delight in partnering with CEC and serving as the cornerstone investor, highlighting Zambia’s dedication to advancing its energy market sustainably.

Managing Director of CEC Plc, Owen Silavwe, conveyed excitement about being pioneers in Zambia’s Green Bond issuance. He emphasized the positive response from a diverse spectrum of investors, marking a pivotal moment for CEC Group, Zambia, and its capital markets.

James Doree, Head of Corporate Investment Banking at Cygnum Capital, commended EAIF’s pragmatic and innovative partnership, affirming their commitment to finding capital market solutions for infrastructure and clean energy investment.