Anirep set to issue green bond for solar power

The Alpha Namibia Industries Renewable Power Limited (Anirep) is set to launch a green bond after S&P Global Ratings assessed the green bond framework as dark green, the highest sustainability rating.

This was said by the board in a notice to shareholders that the second-party opinion (SPO) indicated Anirep’s activities corresponded to the long-term vision of a low-carbon climate-resilient future.

Managing director and group chief executive, Iyaloo ya Nangolo, said: “We are excited that Anirep is now set to launch its debut green bond, to add more fire power to complete the construction and development of further renewable energy projects.”

Anirep is a pure-play renewable energy company of which the generation mix is 100% solar, and most of the proceeds under the framework will be used to finance renewable energy, with a focus on solar.

Anirep initiated the green bond certification process last year, with the support of the International Finance Corporation (IFC), which provided the assistance for the SPO under a technical assistance facility sponsored by HSBC and The Netherlands.

“IFC’s support to Anirep is part of our strategy to support the green economy in Africa,” said Indira Campos, IFC’s acting country manager for Angola, Botswana and Namibia.

“This green bond demonstrates the capital market’s role in crowding in investors for climate-focused financing. This will ultimately support Namibia’s aspirations to transition to a low-carbon economy.”

According to the board, Anirep is in the process of registering a N$5-billion domestic medium-term note with the Namibian Stock Exchange.

The debut issue is expected to be launched in the second quarter of 2024, with Standard Bank as the sole arranger and joint sustainability alongside the IFC.

Anirep provides a bridge for capital markets into utility-scale renewable energy independent power producers with in-house engineering, procurement and construction capabilities.

The company has now created a solid platform with predictable and sustainable long-term cash flows, and recently raised equity of N$437 million by way of a rights issue.

Ya Nangolo said: “We have positioned Anirep to play a pivotal role, as Namibia endeavours to attain self-sufficiency in generating its own electricity.

“We intend developing more renewable energy generation to increase Anirep’s market share of renewable energy generation in the country, to our target of 30% of the forecasted 760MW in Namibia.

“It is imperative that we put in place the building blocks to provide enough energy for our people and to power our commerce, industry and mining.

“We are pleased with Anirep’s progress since our listing as a capital pool company in September 2019.

Anirep now has an asset base of almost N$1 billion, and generates sustainable long-term cash flows from its long-term power purchase agreements.”

At the moment, Namibia imports most of the electricity it uses from the Southern African Power Pool, while Namibia has access to some of the richest solar radiation and wind resources in the world.

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