MEMC’s SunEdison Gets $314 Million Financing in South Africa

MEMC Electronic Materials Inc. (WFR)’s SunEdison unit closed $314 million in financing for two utility- scale solar projects in South Africa.

The combination of equity and long-term debt will fund two solar farms in Limpopo Province that will total 58 megawatts, according to a statement today. SunEdison will partner with Chint Solar, a subsidiary of closely held Chinese electric- appliance maker Chint Group Corp., to develop the projects. Construction is scheduled to begin in January 2013.

Eskom Holding SOC Ltd., which generates 95 percent of the electricity used in Africa’s largest economy, will purchase power from the two solar facilities under a 20-year agreement.

“The energy delivered by these projects will sustain economic growth, bringing both social and fiscal benefits,” Pashupathy Gopalan, a SunEdison vice president for the region, said in the statement.

Standard Bank Group Ltd. (SBK), South Africa’s biggest lender, and Futuregrowth Asset Management arranged debt financing.

MEMC, based in St. Peters, Missouri, is the largest U.S. polysilicon maker after Hemlock Semiconductor Corp. The shares rose 6.4 percent to $2.98 at the close in New York.

To contact the reporter on this story: Justin Doom in New York at jdoom1@bloomberg.net

To contact the editor responsible for this story: Reed Landberg at landberg@bloomberg.net

Bloomberg reserves the right to remove comments but is under no obligation to do so, or to explain individual moderation decisions.

Please enable JavaScript to view the comments powered by Disqus.