Published: May 7, 2013
French firm raises ZAR1bn for South African project in Standard Bank-run deal.
Soitec, a French manufacturing firm, has raised ZAR1bn (US$110mn) through the first renewable-energy bond issued in South Africa.
The 16-year paper was issued with a coupon of 11%. The company will use the money to build a solar power plant in Touwsrivier, South Africa.
As well as being the first such transaction in South Africa, the deal is only the third if its kind worldwide.
South Africa’s Standard Bank acted as lead manager and book runner on the deal, while Deloitte & Touche, Trident Capital and Webber Wentzel Attorneys also advised Soitec.
In a statement announcing the deal, Alexi Contogiannis of Standard Bank’s debt primary markets unit noted that the bond is the longest-dated paper issued in South Africa outside of deals from the country’s largest banks.