Standard Bank Group Ltd., Africa’s largest lender, and Industrial & Commercial Bank of China, agreed to lend as much as 20 billion rand ($2.2 billion) for renewable-energy projects in South Africa.
“Standard Bank and ICBC will jointly provide debt financing on a project-finance basis to companies that are awarded preferred-bidder status under the country’s renewable energy independent power producer procurement program,” George Kotsovos, head of power and infrastructure finance at Standard Bank, said in a statement on the Johannesburg-based lender’s website today.
ICBC, the world’s largest bank by market value, is Standard Bank’s largest shareholder with a 20 percent stake and the pair have provided Chinese and African financing since 2008. South Africa is seeking 3,725 megawatts of power from renewable sources and companies have to submit bids in a third round of offers by Aug. 19.
“The objective of this partnership is to facilitate the entry of investors into South Africa,” ICBC Chairman Jiang Jianqing said in the statement. “ICBC is also certainly interested in raising awareness of the South African investment opportunity among Chinese suppliers as potential sources of contracting capability.”