AIIM takes majority stakes in 30-MW S African solar trio

Private equity fund manager African Infrastructure Investment Managers (AIIM) said on Friday it has bought majority stakes in a 30-MW portfolio of solar park projects in South Africa.

The acquisition, the value of which was kept under wraps, was carried out through AIIM’s IDEAS Managed Fund (IDEAS).

The three projects included in the bundle were jointly developed by South African engineering firm BBEnergy, clean energy project investor Energy Group and gold miner Harmony. All of them achieved financial close last month and are expected to be commissioned in March and April 2023. Construction works are scheduled to begin in June.

Once up and running, the solar farms are expected to produce around 68 GWh of electricity during their first year of operation, with their output to be used to supply Harmony’s operations in the Welkom area in South Africa. The plants will be interconnected through a combination of wheeling and behind the meter solutions.

The projects were financed through a mix of debt and equity. Equity was provided by IDEAS and a fund managed by Mahlako Financial Services, while Rand Merchant Bank, a division of FirstRand Bank, extended debt financing.

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