We are pleased to share an exciting update from CEC Renewables, a subsidiary of Copperbelt Energy Corporation PLC (CEC). On June 21, 2024, CEC Renewables made its inaugural Green Bond coupon payment of USD 2.4 million, marking the bond’s six-month anniversary and making it tradeable on the Lusaka Securities Exchange. This milestone underscores the role and viability of Green Bond investments in Zambia and highlights CEC Renewables’ dedication to delivering value to Zambia and its investors.
In collaboration with CEC PLC, CEC Renewables launched Zambia’s first USD 200 million Green Bond Program, successfully issuing the first tranche of $53.5 million on December 21, 2023. The proceeds have been used to finance the existing 34MW Solar Plant in Riverside, Kitwe, and the development of a 60MW Solar Plant in Itimpi, Kitwe. Since its commissioning on April 11, 2024, the Itimpi Solar Plant has contributed 23.5GWh of renewable energy to the grid. Together, these plants have generated a total of 47.4GWh of clean energy this year.
Hilton Fulele, Asset Manager at CEC Renewables, expressed satisfaction with the initial coupon payment, stating, “This payment demonstrates the viability of Green Bond investments for Zambia and affirms our commitment to delivering value to our investors.”
Owen Silavwe, CEC PLC Group Chief Executive Officer, emphasized the strategic importance of CEC Renewables, stating, “CEC Renewables is a crucial part of our sustainability strategy, especially in bridging the energy gap in Zambia. With alternative financing becoming key, we anticipate further renewable energy projects to enhance our sustainability goals and diversify Zambia’s energy mix.”
The CEC Renewables’ Green Bond is a 15-year bond, with plans to issue the next tranche within the year for developing an additional 130MW at the Itimpi site in Kitwe. By raising funds through Green Bonds, CEC Renewables aims to align its financing approach with its sustainability objectives and a medium-term goal of generating up to 300MW of solar energy.
CEC Renewables remains committed to advancing renewable energy growth in Zambia and supporting the country’s energy transition. With its successful Green Bond program and ongoing renewable projects, CEC Renewables is well-positioned to significantly contribute to Zambia’s energy landscape.
Should you require more information about the Green Bond, please do not hesitate to contact us.
