SunEdison Closes US$314 million (R2.6 Billion) in Funding for 58 MW
(AC) in South Africa Solar Projects
JOHANNESBURG and BELMONT, Calif., Nov.
28, 2012 /PRNewswire/ -- SunEdison, a leading worldwide
solar energy services provider and subsidiary of MEMC Electronic
Materials (NYSE: WFR), in partnership with Chint Solar, the Public Investment Corporation,
and the Kurisani Youth Development Trust, today announced that it
has closed US$314 million (R2.6
Billion) in long-term debt and equity financing for two utility
solar projects in Limpopo Province, South
Africa. Standard Bank and Futuregrowth Asset Management are
the two senior debt providers supporting both projects.
The two projects total 58 megawatts MW (AC). Witkop Solar
Park (30 MW AC) and Soutpan Solar Park (28 MW AC) will be the first
utility scale solar projects to be implemented in Limpopo Province.
Under the terms of the financing agreement, power generated from
the two facilities will be purchased by Eskom, the national utility
in South Africa, through a 20-year
power purchase agreement (PPA). The Soutpan Solar Park is expected
to interconnect in January of 2014, while the Witkop Solar Park is
forecast to interconnect in April of 2014. Construction of both
projects is expected to begin in January of 2013.
Prior to committing to the projects in South Africa, SunEdison performed extensive
tests and models to determine the optimal design and projected
output of the facilities. Once the projects are operational, they
will be monitored around the clock by SunEdison's fleet-wide
Renewable Operations Center (ROC). The ROC will leverage the
SunEdison Environmental & Energy Data System (SEEDS) to help
maximize the efficiency of the facility by tracking its actual
performance against its predicted output.
"As a world leader in renewable energy, we understand our
projects have a transformational impact on the lives of millions of
people. We are delighted that our investments in South Africa will create employment and
stimulate business investment," said Pashupathy Gopalan, SunEdison
Vice President and Managing Director for South Asia and Sub-Saharan Africa. "The energy
delivered by these projects will sustain economic growth bringing
both social and fiscal benefits. We are committed to this region
and will continue to build our local team moving forward."
Chint Solar is a member of the
Chint Group, which manufactures low-voltage electrical products, as
well as solutions for transmission and distribution, instruments
and meters, industry automation and solar energy, and specialised
products for the construction sectors. Dr. Chuan Lu, the Vice President of Chint Solar, said the projects would help to
demonstrate the potential of solar power to create jobs and
stabilise the electricity supply. "South
Africa has higher solar irradiance than other countries
which have invested heavily in solar power, such as Germany. Chint
Solar has been continuously keeping its commitment to
developing solar energy around the world. We are confident that in
the years to come, more solar energy projects will be announced,
furthering energy security in the region," Dr. Lu commented.
The Public Investment Corporation (PIC) is one of Africa's largest investment managers, with
assets under management of over US$130 billion (R1.17
trillion). "The Public Investment Corporation always seeks to
invest in projects that aim to achieve the Government Employee
Pension Fund's dual objective of investing for financial return and
for positive social, economic, and environmental results," said Dr.
Dan Matjila, the PIC's Chief
Investment Officer. "PIC is passionate about environmental
sustainability and contributing towards cleaner energy and a
greener economy, hence we saw value in this investment. Over and
above that, PIC is pleased that this investment will contribute
immensely to job creation, particularly in Limpopo. The project is
expected to create 318 jobs during construction, and 55 jobs on an
on-going basis, with 44 of those designated for historically
disadvantaged individuals. This investment will stimulate
much-needed economic activity, thus directly contributing to the
country's economic development agenda."
Standard Bank, Africa's largest
bank by assets, has extensive experience in financing renewable
energy projects. Ziyaad Sarang, Executive, Mining Energy and
Infrastructure at Standard Bank said: "We are delighted with
Standard Bank's involvement as the Mandated Lead Arranger in these
deals, which sees SunEdison, the Chint Group and PIC making
investments into South Africa
in renewable energy. This transaction goes to the heart of
Standard Bank's core strategy of encouraging investment in power
and infrastructure development in our home market, Africa, and serves to highlight our
commitment to the continued development of clean energy
projects."
Futuregrowth Asset Management, a subsidiary of Old Mutual,
oversees US$13.3 billion (R115 billion) in fixed-income
investments. Futuregrowth portfolio manager Mei-Chi Liou said that the firm is excited about
investing in the renewable energy sector because it will provide
South Africa with a sustainable
energy source while offering pension funds access to a new asset
class with good returns. "We applaud the efforts of government and
other involved parties to ensure the economic benefits are spread
as widely as possible within a sound legal framework. We are
particularly delighted to partner with SunEdison and the Chint
Group, in a mutually beneficial relationship that will bring
upliftment to the area."
About SunEdison
SunEdison is a global provider of
solar-energy services. The company develops finances, installs and
operates distributed power plants using proven photovoltaic
technologies, delivering fully managed, and predictably priced
solar energy services for its commercial, government and utility
customers. In 2011 SunEdison interconnected approximately 300
Megawatts of solar throughout the world. For more information about
SunEdison, please visit http://www.sunedison.com
About MEMC
MEMC is a global leader in semiconductor
and solar technology. MEMC has been a pioneer in the design
and development of silicon wafer technologies for over 50
years. With R&D and manufacturing facilities in the U.S.,
Europe, and Asia, MEMC enables the next generation of high
performance semiconductor devices and solar cells. Through its
SunEdison subsidiary, MEMC is also a developer of solar power
projects and a worldwide leader in solar energy
services. MEMC's common stock is listed on the New York Stock
Exchange under the symbol "WFR." For more information about
MEMC, please visit www.memc.com.
About Chint
Solar
Chint Solar specializes in
cutting-edge research, development and production of solar modules.
The Company has been a trusted provider of PV modules since its
founding in 2006 and it is fully engaged in Solar Energy
Development globally. With support from its parent company Chint
Group, Chint Solar has become a
global total solutions provider for photovoltaic systems.
For more information, please visit: www.astronergy.com
About the Public Investment Corporation
The
Public Investment Corporation (PIC) is a public asset management
firm wholly owned by the South African government, with the
Minister of Finance as the sole shareholder representative of the
government.
PIC's clients are mostly public sector entities including the
Government Employees Pension Fund, which contribute 90% of the
funds that PIC manages. Other clients include Unemployment
Insurance Fund, Associated Institutions Pension Fund, Compensation
Commissioner Pension Fund and Compensation Commissioner Fund.
The PIC owns shares in listed companies and currently controls
over 10% of the Johannesburg Securities Exchange. The PIC is a
hybrid of a single asset manager and a multi-manager with emphasis
on providing its clients with value at a low cost and invests in
established names with strong management requiring little
oversight.
The PIC is a world class asset management company, and has been
in existence for more than a century. It is the largest and most
successful asset manager on the African continent with assets under
management in excess of R1 trillion.
About Standard Bank South Africa
Standard Bank South
Africa is the largest operating entity of Standard Bank Group,
Africa's largest bank by
assets. Standard Bank Group had total assets of about
US$185 billion (over R1
497-billion) at 31 December
2011. Standard Bank's market capitalisation at 31 December 2011 was approximately US
$19 billion (R157 billion).
In South Africa, Standard Bank
provides the full spectrum of financial services. Its Corporate and
Investment Banking division serves a wide range of requirements for
banking, finance, trading, investment, risk management and advisory
services. Corporate and Investment Banking division delivers this
comprehensive range of products and services relating to:
investment banking; global markets; global transactional products
and services; and private equity.
About Futuregrowth
Futuregrowth is a specialist
investment company which actively manages fixed interest related
investment strategies in a way that sustainably enriches the lives
of our stakeholders.
Managing assets of around R120 billion, Futuregrowth has
developed one of the largest and most experienced teams of
investment professionals in the fixed interest space. The team's
specialist skills set, particularly credit analysis, duration and
yield positioning, allows for better risk management and the
ability to deliver value to client portfolios.
With our vision of enriching lives, the company continually
strives to identify opportunities that will deliver economic and
social returns that really matter.
Futuregrowth is a separately operating asset management company
under Old Mutual Investment Group (SA) (OMIGSA).
Forward-Looking Statements
Certain matters discussed
in this press release are forward-looking statements, including
that the Soutpan Solar Park is expected to interconnect in January
of 2014, while the Witkop Solar Park is forecast to interconnect in
April of 2014, and that construction of both projects is expected
to begin in January of 2013. Such statements involve certain risks
and uncertainties that could cause actual results to differ
materially from those in the forward-looking statements. Potential
risks and uncertainties include normal commissioning risks
attendant to large scale solar projects, delays or interruptions in
construction, deployment or activation; the timely availability of
required permits and authorizations for projects from governmental
entities and third parties; changes in applicable regulatory
requirements and incentives for production of solar power; and
general business and economic conditions, including seasonality of
the industry, and other risks described in MEMC's filings with the
United States Securities and Exchange Commission. These
forward-looking statements represent MEMC's judgment as of the date
of this press release. MEMC disclaims, however, any intent or
obligation to update these forward-looking statements.
SOURCE SunEdison