Nov. 7 (Bloomberg) -- South Africa’s Industrial Development Corp., a state-owned lender, raised 5 billion rand ($578 million) to fund renewable-energy projects by selling bonds in a private placement to the state pension-fund manager.
The so-called green bonds will be paid in tranches over 14 years as projects develop, with an initial portion of 500 million rand, the IDC and the Public Investment Corp. said in an e-mailed statement, without providing pricing details.
South Africa has embarked on a renewable-energy drive to lessen the country’s reliance on coal as it boosts generation capacity to avoid a repeat of power outages in 2008 that led to rolling blackouts and shut most of the country’s mines and smelters for five days. The IDC has committed 7.5 billion rand to successful projects in the first two rounds of bidding, and earmarked a further 17.5 billion rand over the next five years.
“The IDC continues to look for more innovative ways of raising funds,” Chief Executive Geoffrey Qhena said in the statement. “The partnership that we have just announced with the PIC is very much in line with our strategy.”
The PIC will collaborate and co-invest with the IDC in some projects, Chief Investment Officer Dan Matjila said in the statement.
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