Two European development finance institutions have teamed up to invest in H1 Capital, a black-owned and managed developer of renewable energy projects in South Africa. Between them, the two are investing a total of R600 million (or almost $40 million) of mezzanine debt in the firm. The investment is the first for the Norfund-managed Climate Investment Fund which is investing R360 million (or about $23.5 million) in the deal, with CDC Group (soon to be renamed British International Investment) investing the balance. Bjørnar Baugerud, a Vice President for Clean Energy at Norfund led the deal for the Climate Investment Fund. No further details of the transaction have been disclosed.
The capital will be used to support the development of renewable projects capable of generating 2.4 GW in South Africa, increasing both the access to and supply of clean, affordable, and reliable energy to people and businesses across the country, thereby increasing their productivity and contribution to South Africa’s GDP. H1 Capital has a robust development pipeline of wind and solar projects, which, once operational, will be capable of generating 6,400 GWh per year, helping towards South Africa’s transition to clean energy, and avoiding as much as 6.2 million tons of CO2 emissions annually.
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