LONDON, UK: Kibo Energy (AIM: KIBO) has signed a Share Purchase Agreement (SPA) to purchase the Victoria Falls Solar Park project in Zimbabwe from Broomfield International Limited.
Kibo Energy will purchase 100% of the issued share capital of Brownhill International Limited and shareholder mortgage claims against Brownhill, which holds the Project through its wholly owned subsidiary Power Ventures (Private) Limited.
The transaction will be for a consideration of GBP 10,000,000, payable in new ordinary shares of Kibo at an issue price of 5p per share, following an intended 1 for 10 share consolidation as a half of the Transaction (equivalent to 0.5p pre consolidation).
The transaction involves the acquisition of the Project that comprises a 100 MW photo voltaic energy generation project located in Victoria Falls, Zimbabwe, which is anticipated to ship an fairness IRR of c.17.6% and total unlevered free cashflow (EBIT) of c. US$107m.
The first 25 MW of the Project is fully funded and currently under construction, with the primary 5 MW of the 25 MW, anticipated to be in manufacturing by finish of April 2022. Broomfield has additional renewable energy projects (hydro, wind and solar) under its portfolio, at various locations in Africa, with an put in capability of 160.4 MW, in which a proper of first refusal will be granted to Kibo Energy as a half of the Transaction.
The project is a 100 MW inexperienced photo voltaic PV facility, connected to the Hwangwe-Victoria Falls nationwide transmission line by way of a easy loop-in loop-out connection and, positioned at lower than a kilometre from the photo voltaic facility.
The Project roll out is being carried out in phases of 25MW, beginning with 5 MW being connected to the grid in April 2022 and 20 MW earlier than December 2022.
All necessary permits for the Project are in place (Generation License, Environmental Permit, Grid connection). The Project is underpinned by lengthy run Power Purchase Agreements (“PPA”) for c.10-year terms. The PPA’s are all USD-denominated and with mining and industrial customers.
The demand and want for fully renewable energy in Zimbabwe are now acknowledged as a nationwide precedence and backed up by Zimbabwean authorities coverage directed at infrastructure investment.
Louis Coetzee, CEO of Kibo Energy, commented: “We are happy to have been in a beneficial place to take part on this Transaction, which is timely, following the Company’s technique to disinvest from fossil fuels and focus on renewable and clear energy projects. The profitable completion of this Transaction will scale-up Kibo’s footprint in Africa, with the potential addition of renewable energy projects in extra of 100 MW with the primary 5 MW going into manufacturing on the finish of April and the primary 25 MW fully funded for construction and commissioning.
Drawing from our investments into the reserve energy market through Mast Energy Development’s, development of waste-to-energy projects in Southern Africa and the UK, in addition to strategic partnerships with key lengthy duration energy storage players, we’re positioning the corporate for growth and are enhancing our ESG credentials, all of which drive worth creation for investors, communities and the environment. This locations Kibo on the coronary heart of a really bright and renewable future for energy.
The Company has labored tirelessly over the previous 6 months to attain the purpose the place it will now have an asset portfolio with producing renewable energy assets and a number of close to manufacturing assets. The close to manufacturing renewable energy assets all have a time horizon of lower than 18 months to first production.”
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