Ncondezi Energy Ltd - African power development company - Signs exclusive term sheet between its subsidiary Ncondezi Green Power & Nesa Capital Pty Ltd on the formation of a joint venture company focused on the Southern African renewable energy sector.
The new JV is to be a new company, and will have Ncondezi Green Power's 400,000 megawatt-peak solar project and 0.9 megawatt-hour battery storage project under construction, NGP's pipeline in Mozambique, NESA's renewable energy management team and EPC business.
Under the term sheet, NGP will acquire a 40% stake minimum in the new JV, with various options to raise its interest in certain terms.
Discussions are underway with multiple parties targeting a fund raise into the JV for working capital purposes. The JV's capital structure is expected to be finalised in the third quarter of 2021.
"We are delighted to announce entering into the Term sheet with NESA to give the parties a period of exclusivity to negotiate an exciting JV. The proposed JV with NESA would create a Southern African champion with a cash generative project portfolio, enabling us to rapidly increase our presence in the sector with a clear pathway towards 100MWp solar PV and 13.5MWp battery storage over the next 3 years," said Chief Executive Officer Hanno Pengilly.
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By Dayo Laniyan; dayolaniyan@alliancenews.com
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