In a groundbreaking collaboration, Infrastructure Debt, a division of Old Mutual Alternative Investments (“OMAI”), partnered with Rand Merchant Bank (RMB), a division of FirstRand Bank Limited, and a consortium comprising ENGIE, G7, Meadows and Perpetua to achieve financial close and commence construction on the Oya Energy project (“Oya Energy” or “Project”), the single largest hybrid renewable energy facility in Africa. The Project was born out of South Africa’s Risk Mitigation Independent Power Producers Procurement Programme and signed a 20-year power purchase agreement with Eskom and an Implementation Agreement with the Department of Mineral Resources and Energy in South Africa in 2023.

The Project represents a consortium of equity investors including ENGIE (35%), G7 Renewable Energies (20%), Meadows Energy (22.5%) and Perpetua Investment Holdings (22.5%). RMB partnered with the consortium as the sole Mandated Lead Arranger for the Project. In collaboration with RMB, Infrastructure Debt acted in its capacity as a lender in the transaction and will co-fund the Senior Facilities in the Project, which will be used to construct the hybrid facility.

Oya Energy represents a pioneering example of sustainable energy innovation with a contracted capacity of 128 MW, combining 155 MW of solar PV power, 86 MW of wind power, and a 92 MW / 242 MWh battery energy storage system, all nestled within a single location. Once operational, the integrated system will efficiently orchestrate the hybrid components, and provide dispatchable power to the grid between 5am and 9:30pm.

Rolf Canto, the Head of Infrastructure Debt, underscored the Project’s significance emphasising its capacity to deliver dependable energy while harnessing the abundant renewable sources available on site. He further added, “This transaction once again demonstrates the highly specialised capabilities available within the Infrastructure Debt team to support complex, yet critically needed infrastructure.”

Kabelo Mabaso, Infrastructure Debt’s lead transactor on Oya Energy, reflected on the journey and the key partnerships forged over several years that culminated in securing crucial funding for the project. “We are proud to have played a meaningful role in one of the largest and most innovative hybrid renewable energy projects on the continent,” he remarks, “providing crucial dispatchable energy to the grid at a competitive tariff.”

Beyond its sheer scale, Oya Energy creates meaningful jobs during its construction phase, and once operational, is expected to deliver clean power to approximately 180,000 South African homes, and significantly curb carbon emissions by a staggering 573,000 tonnes annually.

OMAI Infrastructure Debt is an established South African institutional investor. Over the years, it has participated in several complex project finance debt transactions, including providing long-dated funding into power, renewable energy, public-private partnerships, and water infrastructure transactions. Its portfolio consists of investments in over thirty infrastructure projects at various stages of construction and operations, with a specialised team exhibiting a significant record of coordinating and structuring various infrastructure transactions. Infrastructure Debt remains committed to partnering with investors, companies, commercial banks, and development finance institutions as it continues to pioneer sustainable investments in South Africa.