On Thursday, global wind and solar company Mainstream Renewable Power (MRP), announced the closing of the R1.66 billion ($117.5 million) investment deal with the Rockefeller Brothers Fund (RBF).
Signed in June, the renewable power firm has committed R2,5 billion ($177.5 million) of equity in the Lekela Power project, of which R1.66 billion ($117.5 million) will come from RBF and the other investors, and R851 million ($60 million) from Mainstream itself, the renewable firm said in a statement.
Rockefeller Brothers Fund invests in wind power
According to MRP, the investment will finance Mainstream’s continued expansion of the Lekela Power platform, a joint venture with private equity firm Actis.
The funds will assist the project in reaching its goal of generating 1.3GW of new power capacity in Africa by 2018, while addressing the challenge of climate change.
CEO Eddie O’Connor said: “The teaming up of the world’s leading independent renewable power developer with a foundation started by members of the family that effectively founded the global oil industry, is a significant moment in the world’s transition to a new power system based on clean energy.”
He added: “Providing electricity for the people of Africa requires huge investments and is an opportunity to re-kindle growth and help the world economy overcome secular stagnation.
“We hope this will be the first investment of many from impact investors in this sector.”
Stephen Heintz, president of the Rockefeller Brothers Fund, said: “I am very pleased the RBF will invest in Mainstream, an investment sourced by our Outsourced Chief Investment Officer, Perella Weinberg Partners, which will bring renewable energy to communities across Africa.
“I’m confident that if John D. Rockefeller were alive today, he too would recognise the enormous opportunities in the clean energy economy and be at the forefront of the global shift to renewable resources.”
The deal will enable Lekela to continue to develop its pipeline of wind and solar projects in Africa, the Irish renewable firm said.
“The platform plans to build four more wind farms in South Africa, a wind farm and two solar plants in Egypt, as well as wind farms in Senegal and Ghana,” they added.
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