Reatile Renewables Virginia has received a sizable equity finance facility from Prescient Investment Management, a systematic investment manager, to acquire 31.5% of Ursa Energy.
Ursa Energy has a 240MW Solar PV farm in the Free State, which forms part of bid window 6 of the Renewable Energy Independent Power Producer Procurement Programme (REIPPPP).
The transaction was facilitated through the Prescient Clean Energy and Infrastructure Debt Fund (CEIDF).
Prescient portfolio manager Luzuko Nomjana yesterday said the CEIDF was developed specifically to help bridge the infrastructure gap and contribute towards generating more vibrant economic growth in South Africa.
“This is the first project we have concluded with the Reatile team and we look forward to further transformative transactions down the line with them,” Nomjana said.
Prior to this transaction, the CEIDF had committed over R4 billion to 30 renewable energy projects and infrastructure opportunities.
The fund has contributed to an additional 2.2GW of clean energy, the equivalent of one million average South African homes.
Prescient said the infrastructure investment gap in South Africa was estimated to be R4.8 trillion by 2030, and such opportunities in low-and middle-income countries including South Africa were in demand from investors seeking alternative investment opportunities.
Despite the attractiveness of the sector, it said many projects have been hampered by corruption, mismanagement, lack of expertise, fragmented planning and coordination and political instability.
Asset managers, in turn, were being challenged to develop investment opportunities that mitigated these risks, offered risk-commensurate investment returns and delivered sustainable social impact, the company said.
Prescient’s head of credit Conway Williams said they believed it was their responsibility to ensure that the capital they were entrusted with led to deals that enhanced the lives of South Africans, benefiting the economy, the environment, and society as a whole.
“Therefore, it's especially rewarding for us to support initiatives like this one, where we can generate commercial returns for our clients while making a tangible positive impact,” Williams said.
Since incorporation, Reatile was said to have concluded 17 acquisitions, disposals and merger transactions (including associated fund raising) and has been actively involved in the funding and implementation of 14 major organic growth projects.
As a result, Reatile has developed strong relationships with financiers, corporate and project finance professionals, as well as a host of legal professionals.
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