CEC Renewables announces USD 2.4 million bond payment

CEC Renewables, a subsidiary of Copperbelt Energy Corporation (CEC) has made its first Green Bond Coupon payment of USD 2.4 million.


The payment marks the bond’s sixth month anniversary, which now makes it trade-able on the Lusaka Securities Exchange (LSE) and the payment also showcases the viability of green bond investments, underscoring CEC Renewables’ commitment to delivering value to its investors.


CEC Renewables, in collaboration with CEC registered the first USD 200 million green bond program on LSE, with a successful issuance of the first tranche equal to $53.5 million on December 21, 2023.


The proceeds from this green bond have been utilised in financing of the company’s existing 34MW Solar Plant in Riverside, Kitwe, and the development of the 60MW Solar Plant in Itimpi, Kitwe. The Itimpi Solar Plant, commissioned on April 11, 2024, has so far injected 23.5Gwh of renewable energy into the grid. And both plants have contributed a total of 47.4Gwh of clean energy to date.


Hilton Fulele, Asset Manager at CEC Renewables, expressed his satisfaction with the first coupon payment, stating: “the payment of our first coupon not only demonstrates the viability of Green Bond investments for Zambia but also affirms our commitment to ensuring that we deliver value to our investors.”


Owen Silavwe, CEC Group Chief Executive Officer emphasised the significance of CEC Renewables within the group’s sustainability strategy, stating: “the establishment of CEC Renewables in the group is an integral part of our sustainability strategy and focus on contributing to bridging the energy gap in the country, particularly at a time when alternative financing has become key to accelerating the development of energy projects. We look forward to the development of more renewable energy projects from CEC Renewables to meet our Group’s sustainability ambitions and further contribute to the diversification of Zambia’s energy mix.”


The CEC Renewables’ Green Bond is a 15-year bond, and the Company plans to issue the next tranche within the year, for the development of an additional 130 MW at its Itimpi site in Kitwe. By raising finance through Green Bonds, CEC Renewables Limited aims to align its funding approach with its broader corporate mission, which includes sustainability objectives and a medium-term aspiration of generating up to 300MW of solar energy.


CEC Renewables remains committed to being at the forefront of driving the growth of renewable energy in Zambia and contributing to the country’s energy transition. With its successful Green Bond programme and ongoing implementation of renewable projects, CEC Renewables is well-positioned to make a significant contribution to Zambia’s energy landscape.


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