![]() In our model, we assume that the revolving and senior credit facilities have floating rates expressed as spreads to LIBOR, and that subordinated debt instruments and preferred stock pay fixed interest. Interest Ratesįloating interest rates are more common for senior debt than subordinated debt and preferred stock. For example, the former approach better accommodates debt that has 5% scheduled amortization for four years, followed by a bullet repayment of 80% in the fifth year. Expressing debt amortization as percentages of original face value in this schedule, rather than specifying a maturity year for each instrument, affords greater flexibility. Revolving credit facilities have no required amortization over the term of the facility, and preferred stock has no specified maturity date or mandatory periodic repayment, so we have excluded these instruments from the required repayment schedule. These assumptions include interest rates, conversion prices for convertible securities, and scheduled amortization for debt requiring periodic repayment of principal. The first step in building our debt schedule is to enter assumptions related to the characteristics of any debt and preferred stock financing. Redstone’s output will be sold to South Africa’s state-owned utility Eskom under a 20-year power purchase agreement (PPA).Cash Flow Statement Debt Balance Projections The project is certified by the Climate Bonds Standard and Certification Scheme and is consistent with the goals of the Paris climate agreement, which aims to limit global warming to below 2☌,” says ADB. “This is the first renewable energy project to offer ancillary services in the country. Acwa Power estimates that the facility will be able to supply 200,000 South African homes with electricity.Īt the same time, the Redstone CSP is expected to offset 440 metric tons of CO2 emissions per year. The concentrating solar power plant will have a capacity of 100 MW, with the ability to store energy for 12 hours. The project will require a total investment of R11.6 billion ($770 million), with nearly R7 billion ($463 million) in foreign direct investment, according to the AfDB. And at this rate, the PSC could enter service in the fourth quarter of 2023. A key construction milestone, the tower’s foundation is already complete. According to the AfDB, engineering work is more than 58% complete, while procurement and construction are more than 45% and 6% complete, respectively. Work began on the solar thermal project site nine months ago. ![]() Private investors Absa Bank, Investec Bank, Nedbank and Sanlam are also participating in the financing of the Redstone CSP. The other part of the financing is being provided by development banks, the UK’s CDC Group, Germany’s Deutsche Investitions-und Entwicklungsgesellschaft (DEG), the Nederlandse Financierings-Maatschappij voor Ontwikkelingslanden (FMO) of the Netherlands and South Africa’s Industrial Development Corporation (IDC). The project in the Northern Cape is receiving 2.306 billion rand (more than $152 million) from the AfDB. It is the first debt drawdown, after a financial mobilization arranged by the African Development Bank (AfDB) on behalf of the project’s developers, Saudi Arabian independent power producer (IPP) Acwa Power, South African Pele Green Energy, Central Energy Fund and the local community. The Redstone Concentrated Solar Power project has reached a new milestone.
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