CEC Renewables Limited
Status: Approved investmentWhy disclosure?
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Disclaimer
The information as disclosed is indicative and provided on an "as-is/as available" basis for general informational purposes only and should not be construed as financial, legal or investment advice, nor as a commitment or an offer to arrange or provide any financing. The final decision to provide financing is subject to the terms and conditions of FMO in its sole and absolute discretion. When providing links to other sites, FMO bears no responsibility for the accuracy, legality or content of the external site or for that of subsequent links. The information on proposed investment for high-risk investments is made available in the language relevant to the country or region where the bulk of operations take place. Translations of any information into languages other than English are intended as a convenience for local stakeholders. In case of any discrepancy, the information provided in English will prevail.
Who is our customer
CEC Renewables Limited ("Issuer" or "CEC-R") is a renewable energy platform and a wholly-owned subsidiary of the Copperbelt Energy Corporation PLC ("CEC"). CEC-R was established to drive CEC's objective of diversifying its power generation through integrating renewable energy. CEC-R issued the second tranche of Zambia's inaugural, senior-secured green bond to a selected number of investors. The green bond's second tranche, valued at USD 96.7 mln, finances the second phase of the Itimpi Solar photovoltaic (PV) Plant (the "Project"). The Project is in Garneton, Kitwe, in Zambia's Copperbelt province. It contributes 136 MW to CEC-R's renewable energy portfolio, bringing CEC-R's total solar generation capacity to 230 MW.
What is our funding objective?
FMO’s financing objective is to contribute to developing and constructing the 136MW Itimpi-2 Solar PV Plant in Zambia.
Why do we fund this investment?
FMO provides scarce long-term USD debt via a capital market instrument in Zambia. The transaction is labeled 100% Green and 100% Reducing Inequality, which fits well with FMO’s energy strategy.
What is the Environmental and Social categorization rationale?
The project is rated an E&S category B+ investment, as the solar PV project has potential adverse environmental and social (E&S) impacts that extend site boundaries and might, in part, be irreversible. However, they can be prevented and addressed through relevant mitigation measures. Key E&S characteristics of this investment include land acquisition, limited economic resettlement, minimal biodiversity impacts, health, safety, and security, and workforce influx during construction. The following IFC Performance Standards are deemed applicable: PS 1: Assessment and Management of Environmental and Social Risks and Impacts; PS 2: Labor and Working Conditions; PS 3: Resource Efficiency and Pollution Prevention; PS 4: Community Health, Safety, and Security; PS 5: Land Acquisition and Involuntary Resettlement; PS 6: Biodiversity Conservation and Sustainable Management of Living Natural Resources; and PS 8: Cultural Heritage. PS 7: Indigenous Peoples is deemed not applicable. Note that the agreement includes an Environmental and Social Action Plan (ESAP) to bring the project towards full compliance with the IFC PSs.
- Website customer/investment
- https://cecinvestor.com/
- Region
- Africa
- Country
- Zambia
- Sector
- Energy
- Publication date
- 12/18/2024
- Effective date
- 12/2/2024
- Total FMO financing
- USD 59.00 MLN
- Funding
- FMO NV
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Risk categorization on environmental and social impacts, A = high risk, B+ = medium high risk, B = medium risk, C = low risk
Environmental & Social Category
(A, B+, B or C) - B+