Media release
Kinangop Wind Park project reaches financial close
Nairobi, 29 November 2013: The African Infrastructure Investment Fund 2 (“AIIF2”) and Norfund, the
Norwegian Investment Fund for Developing Countries, achieved financial close of the 60.8MW
Kinangop Wind Park project in Nairobi, Kenya today. Kinangop Wind Park is the first independent
large-scale wind farm in East Africa and a landmark transaction for both the African power sector and
the project finance market.
The US$150 million project comprises the construction, financing, operation and maintenance of a
60.8MW greenfield wind park located in the Kinangop region, about 60km northwest of Nairobi.
AIIF2, which is advised by African Infrastructure Investment Managers (AIIM), a joint venture between
the Macquarie Group and the Old Mutual Investment Group, is a majority owner in the project
company, Kinangop Wind Park Limited (“KWP”), while Norfund owns the remaining shares. The two
investors teamed up with project developers, Aeolus Kenya Limited, in 2012 to support them in
bringing the project to financial close. Through their investment in KWP, AIIF2 and Norfund will
promote sustainable and environmentally friendly electricity generation in Kenya.
The mandated lead for the arrangement of the project debt is CFC Stanbic, the Kenyan presence of
Standard Bank of South Africa, which has also underwritten the full debt requirements of the Project.
The Project will be built by Spanish construction company, Iberdrola Ingenieria y Construccion, which
will install 38 General Electric 1.6MW wind turbines. KWP will sell electricity to the Kenya Power and
Lighting Company, Kenya’s electricity distribution company, under a long-term power purchase
agreement. The Project will start feeding electricity into the grid in the first quarter of 2015 and full
commercial operations are expected to commence in July 2015.
According to AIIM’s Regional Director for East Africa, Kameel Virjee, AIIF2 reached final close in
September 2011 with total commitments of US$500 million. “AIIF2 is designed to invest equity in a
diversified infrastructure and infrastructure related assets portfolio, primarily within Sub-Saharan
Africa,” he explains. “AIIF2 recognises that effective infrastructure is vital for economic growth and
development of the African continent. As the continent becomes an increasingly attractive investment
destination, through the improvement of political risk and corporate governance, the role of
infrastructure in the development of the continent has become more apparent.”
AIIF2 aims to draw value from the growing number of African infrastructure investment opportunities
and, to date has made strategic investments in the energy and transport sectors. AIIF2 became
involved in the Project in 2012 and assisted the developer to conclude all material contracts and
deliver a bankable project.
Norfund (the Norwegian Investment Fund for Developing Countries) is owned by the Ministry of
Foreign Affairs and serves as an instrument in Norwegian development assistance policy. The fund
contributes to poverty reduction and economic development through investments in profitable
businesses and transfer of knowledge and technology. The main investment sector is renewable
energy, including hydro, wind and solar power projects. The current investment portfolio of Norfund
totals USD 1.5 billion invested in 110 different projects, in Eastern and Southern Africa, Central
America and South East Asia.
Aeolus Kenya Ltd (AKL) is a project development company that specializes in the development of
large-scale energy and infrastructure projects, bringing internationally renowned partners and private
finance together to help Africa grow. AKL acquired the rights to develop the Kinangop Wind Park in
2007, with the strong support of its investors, the Kenya Government, and the Kenya Power and
Lighting Company (KPLC). AKL, together with Norfund and AIIF2, negotiated the power purchase
agreement with KPLC, identified and negotiated contracts with world-class partners General Electric
and Iberdrola Ingenieria y Construccion. AKL also identified and procured the financial partners to
fund and own the Kinangop Wind Park through CFC Stanbic Bank, AIIF2 and Norfund.
ENDS
Contact
For further information please contact Old Mutual Investment Group Media Specialist, Jenna Wilson
on jwilson@oldmutualinvest.com or 021 509 5667/ 076 736 1852