Renewable energy solutions provider SOLA Group has optimised the debt facilities in its corporate and industrial solar PV fund Orionis and streamlined the fund's capital structure as part of its portfolio-based financing approach.
This flexible debt facility allows for dynamic operational cash flow management and reduced interest costs through an optimised capital structure, all of which benefits shareholders and holds immense potential for future portfolio scaling.
The optimisation plan, which was supported by grant funding from the Clean Captive Installations for Industrial Clients in sub-Saharan Africa project, included simplifying the corporate and funding structures, consolidating equity instruments, and restructuring debt facilities, the company says.
The Orionis portfolio, which supports 37 MW of operating rooftop solar projects, was optimised through debt refinancing. The fund adopts a long-term lens on the continued and sustained enhancement of renewable-energy infrastructure, says SOLA project finance manager James Dry.
The fund has the direct knock-on effect of supplying clean and sustainable energy to a host of sectors, including breweries, pharmaceuticals, mining, data and software, food, retail and wine production, among others.
“In line with our mission, the optimisation ensures that offtakers enjoy a continued clean energy supply through enhanced renewable energy infrastructure reliability. The innovations in how the finance has been structured will see improved returns to Orionis’s shareholders.”
The fund's total debt facility is R250-million, with a further R150-million being made available, and is the result of SOLA’s finance and development partnership with financial services firm Nedbank Corporate and Investment Banking.
“Streamlining the capital structure of the fund is a clear signal to the market that SOLA is maturing in its capability to optimise assets and project portfolios,” he notes.
Further, the financing model is scalable with the potential for replication across SOLA Group’s renewable-energy portfolios, including utility-scale projects.
Orionis was established in 2019 by SOLA Group in partnership with African Infrastructure Investment Managers and Nedbank, and was designed to finance and operate commercial and industrial solar PV projects across South Africa.
“We are excited about the expanding possibilities that are created when our business grows and matures alongside key partners,” says independent power producer subsidiary SOLA assets MD Katherine Persson. 