· Madagascar has recently secured USD 19 Million to fund its largest Solar Power Plant.
· Investor firms GreenYellow, Axian, Societe Generale, GuarantCo and African Guarantee Fund has closed MGA 73.8 billion (approx. USD 19 million) transaction to support the debt funding.
Madagascar has been intensifying its efforts for its green energy transition and supporting the debt funding of the 20 MW solar photovoltaic power plant in Ambatolampy. The country has recently secured USD 19 Million to fund its largest Solar Power Plant. Investor firms GreenYellow, Axian, Societe Generale, GuarantCo and African Guarantee Fund have closed MGA 73.8 billion (approx. USD 19 million) transaction to support the debt funding.
This is the largest power plant in the country built and operated by GreenYellow. since 2018. The transaction was made possible, by acquiring 51 percent of the solar plant’s shares in June 2020 by Axian while Societe Generale, acting as sole arranger and co-lender with BNI and BMOI, raised USD 19 million debt. Additional support was given by GuarantCo and the African Guarantee Fund with guarantees of MGA 36.9 billion (approx. USD 9.3 million) and MGA 14.8 billion (approx. USD 3.8 million) respectively.
The transaction is expected to change the complexion of Madagascar’s energy mix which is currently dominated by heavy fuel oil and diesel. Madagascar aims for an 80 percent renewable energy mix by 2030 and improves its energy security. The transaction is expected to lead to more GreenYellow and AXIAN partnerships to boost investments in new greenfield projects in Madagascar and make them a key contributor to the country’s energy plans. Additionally, GreenYellow and Axian, have the potential to offer a more stable supply of energy, thus help in providing access to clean, affordable, and reliable energy, creating local jobs, and stimulating economic development.
