Nedbank CIB leads financing of Envusa Energy

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Nedbank Corporate and Investment Banking (CIB) has taken a pivotal role in the landmark portfolio financing of the first phase of the Envusa Energy projects, which aim to revolutionise energy trading in southern Africa.

Envusa Energy is a joint venture between mining giant Anglo American and global renewable energy independent power producer EDF Renewables.

Nedbank CIB led the structuring, negotiation and execution of the Envusa Energy transaction. The bank was entrusted by Anglo American and EDF Renewables to coordinate and manage various workstreams leading to the financial closure of this transaction.

As a co-mandated lead arranger, lender, hedge provider, facility agent, coordinating, technical, insurance, and account bank for this multi-billion-rand deal, Nedbank CIB’s involvement underscores its commitment to sustainable and inclusive growth across the continent.

Envusa Energy is set to transform the energy landscape in southern Africa. Its ambitious goal is to establish a renewable energy ecosystem with an expected generation capacity of approximately 3 to 5GW by 2030 from wind, solar and storage projects. This initiative represents one of the region’s largest private-sector decarbonisation efforts.

This first phase of Envusa Energy projects includes the Umsobomvu wind project (140MW), the Hartebeesthoek wind project (140MW) and the Mooi Plaats solar project (240 MW), with a total capacity of 520MW. These projects will directly benefit Anglo American’s mines, smelters, and refineries, serving as off-takers.

This multi-billion-rand deal signifies Anglo American’s inaugural step toward decarbonising its operations in southern Africa. By backing Envusa Energy, the mining company affirms its commitment to reducing its carbon footprint and adopting sustainable energy alternatives.

Nolitha Fakude, chair of Anglo American’s management board in South Africa and of Envusa Energy, expressed her delight at the strides made in priming the platform for enduring success as a leading renewable energy entity in South Africa. The attainment of financial closure for these three premium renewable energy projects is a pivotal moment in Anglo American’s global decarbonisation efforts, and it strengthens South Africa’s resolve for a robust, resilient and clean energy future.

Tristan de Drouas, CEO at EDF Renewables in South Africa, said: “Collaborating with Anglo American to apply our extensive global expertise in renewable energy infrastructure development, design and delivery has been immensely rewarding. With Envusa Energy being developed as a jointly owned venture with Anglo American, we have solidified our long-term commitment to South Africa’s transition to clean energy.”

These renewable energy projects are poised to yield substantial savings on electricity costs for Anglo operations relative to their current tariffs.

As the project progresses, one can expect significant positive impacts on local communities across southern Africa.

The energy transition offers a unique opportunity to generate substantial new economic opportunities as part of South Africa’s journey towards an inclusive, sustainable, and low-carbon economy. Envusa Energy is exploring black economic empowerment and community partnership models that will enable businesses and host communities to share in the benefits created by the development of the renewable energy ecosystem along its value chain.

Nedbank CIB’s multifaceted role in the Envusa Energy project demonstrates its expertise and unwavering commitment to sustainable finance. As the co-mandated lead arranger and coordinating bank, it skilfully facilitated the financing process, ensuring seamless coordination among all stakeholders. Additionally, as the hedge provider, the bank effectively managed risk and supported the project’s financial stability.

Anél Bosman, group managing executive at Nedbank CIB, expressed delight in the bank supporting two major clients, Anglo American and EDF Renewables, in creating the Envusa Energy platform.

Nedbank CIB, Anél Bosman, Nedbank

Anél Bosman, group managing executive at Nedbank CIB. Image: Supplied

“Designed and built from the ground up, Envusa Energy has a forward-looking vision – to accelerate the energy transition and align with Anglo American’s decarbonisation commitments. Nedbank CIB takes immense pride in its role, having contributed to the project’s early successes. We eagerly anticipate a continued partnership as we work together to achieve Envusa Energy’s ambitious goals,” Bosman said.

As southern Africa continues its journey toward cleaner energy solutions, Nedbank CIB’s involvement in the Envusa Energy project sets a powerful precedent.

Amith Singh, head of Energy Finance at Nedbank CIB, concludes: “Envusa Energy represents a landmark deal – one that exemplifies Nedbank CIB’s dedication to driving sustainable and inclusive growth across the continent. By supporting clients in their transition to a low-carbon economy, Nedbank CIB plays a pivotal role in southern Africa’s ongoing journey toward cleaner energy solutions.”

Amith Singh, Nedbank CIB, Nedbank

Amith Singh, head of Energy Finance at Nedbank CIB. Image: Supplied

Brought to you by Nedbank Corporate and Investment Banking (CIB).

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