Private credit firm, Norsad Finance, is researching opportunities to support companies involved in the country’s renewable energy sector, with up to P100 million available per transaction.
Norsad’s Investment Director, Oteng Sebonego told last week’s resources infrastructure and energy forum that the firm was open to proposals around green field developments, companies looking to self-generate their own electricity, those looking to reduce their carbon emissions as well as those looking at industrial-scale solar.
He said in its 30-year history in Africa, Norsad has put debt into renewable energy, such as in Zimbabwe and a 20 megawatt solar and hydro project. Sebonego said rather than funding house to house renewable installations, Norsad preferred to deal with a company that was involved in those types of initiatives. He explained that the firm prefers smaller projects of 20MW and less and for greenfield developments, requires that applicants have an Independent Power Producer licence, as well as a Power Producer Agreement indicating the tariff to be charged.
In addition, applicants need to demonstrate that they have also put their own equity into the project, before Norsad can come on board.
Norsad has a balance sheet of P2 billion and a number of impact projects funded around Southern Africa.