12 November 2020
Clifford Chance advises ING Bank and DBSA on the financing of a portfolio of seven solar farms in Angola with a combined capacity of 370MW
Clifford Chance has advised ING Bank and the Development Bank of Southern Africa (DBSA) on the financing of seven solar farms in Angola with a combined capacity of 370MW, including one of the largest solar projects in sub-Saharan Africa to date.
This project is a collaboration of multiple parties, including Hitachi ABB Power Grids, MCA as EPC Contractor, Sun Africa as Developer and several other Swedish companies to supplying equipment to solar farms in Angola, which wants to increase the share of sustainable energy in the country.
A proportion of the transaction is financed by the Swedish Export Credit Corporation (SEK), which is guaranteed by the Swedish Export Credit Agency (EKN) and arranged by ING Bank N.V., with an export credit of EUR 560 million. A further EUR 80 million is being financed by DBSA and arranged by ING Bank N.V..
When constructed, the total capacity of the seven solar projects will be 370 megawatts and will bring significant benefits for Angola's electricity supply, which, to date, has been largely dependent on fossil fuels for its electricity generation. The major cities are connected to the national power grid but diesel generators are generally used in rural areas to provide villages with electricity. As two of the projects will be connected to the main grid, and five projects will be connected in rural areas, these solar farms will therefore bring a new strand of sustainable renewable energy to thousands of Angolan citizens in various parts of the country.
The Clifford Chance team was led by David Woolmer, with support from Philip Walsh and Priyanka Paunrana. The Clifford Chance team was delighted to be able to lead the legal documentation process and advise ING and DBSA on this landmark project, working constructively with ING, DBSA, the borrower, the Angolan Ministry of Finance and its counsel and all other stakeholders to bring the transaction to a successful close.