Actis announces exit of Globeleq Africa to CDC and Norfund consortium

Online since 15.09.2015 • Filed under Industry news
Actis announces exit of Globeleq Africa to CDC and Norfund consortium

London 14 September 2015: Globeleq, a company owned by Actis, the pan-emerging market investor, has completed the sale and transfer of Globeleq Africa, the leading power generation platform in Africa, to a company owned by Norfund, the Norwegian investment fund for developing countries and CDC Group (“CDC”), the UK government’s development finance institution.

Norfund acquired a significant minority stake (30%) in Globeleq Africa for a final cash consideration of US$227 million. CDC, which already held a majority indirect investment in Globeleq Africa via the Actis Infrastructure 2 fund, transferred its interest into the new company owned jointly with Norfund.

Globeleq Africa manages electricity-generating assets across Cameroon, Tanzania, Cote d’Ivoire, Kenya and South Africa, spanning gas, heavy fuel oil (HFO) wind and solar technologies.  During the past seven years, through Globeleq, Actis has invested over $350m in Globeleq Africa. As a result, Globeleq Africa has more than doubled its installed capacity to 1,234MW and the business is now the leading power generation platform on the continent.  

Actis applies rigorous Environmental, Social and Governance standards across its portfolio companies and Globeleq Africa is no exception; the business operates with world-class ESG standards in every underlying asset.  The strong commitment to maintaining these standards will continue under the ownership of CDC and Norfund.

Key milestones during Actis’s investment in Globeleq Africa have included the completion, on time and below budget, of the Azito power plant conversion in Cote d’Ivoire from open to combined cycle technology.  The conversion increased the plant’s installed capacity by almost 50% (to 432MW) eliminating the need for additional gas, this has significantly contributed to the stability of Côte d’Ivoire’s power sector. Globeleq Africa also successfully backed the construction of three renewable energy generation assets with a combined capacity of 238MW under the first round of the ambitious South African Renewable Energy Procurement Program.  The next growth milestone will be the expansion of the Kribi generation plant in Cameroon, currently in advanced development and expected to reach financial close later in the year.

Torbjorn Caesar, Actis Senior Partner said: “We are proud of what we have achieved over the past decade in terms of creating a much needed energy infrastructure in Africa. We are confident that CDC and Norfund, working as direct investors with Globeleq Africa’s management team, can successfully continue that work.”

Goldman Sachs acted as exclusive advisor to Actis. 

About Actis

Actis invests exclusively in the emerging markets with a growing portfolio of investments in Asia, Africa and Latin America; it currently has US$7.6 billion funds under management.  Combining the expertise of c. 100 investment professionals on the ground in twelve countries, Actis identifies investment opportunities in three areas: private equity, energy and real estate.  Since 2002 Actis has deployed in excess of US$1.6 billion in 28 energy transactions involving power generation and electricity distribution assets, providing 15 million people with access to electricity.  Including this transaction, Actis has energy investments in six countries across Africa.   

Actis operates under the highest standards of environmental, social and governance standards within the industry and helped the UN define the code for responsible investing.  Actis is proud to actively and positively grow the value of those companies in which it invests and in so doing, contribute to broader society.

www.act.is

 

About Globeleq

Globeleq is an experienced developer, owner and operator of independent power projects in the emerging markets, with a specific focus on Africa and the Americas.  The company develops economically sustainable businesses that support the continued development of the electric power sector in these regions.  

www.globeleq.com

About CDC

CDC is the UK government-owned development finance institution. CDC’s mission is to support the building of businesses throughout Africa and South Asia, to create jobs and making a lasting difference to people’s lives in some of the world’s poorest places.

CDC provides investment capital in all its forms, including equity, debt, mezzanine and guarantees, and this capital is typically used to fund growth. This capital is provided directly and through fund managers that are aligned with our aims.

CDC invests from its own balance sheet to invest and has net assets of £3.4bn.

www.cdcgroup.com

About Norfund

Norfund, the Norwegian Investment Fund for Developing Countries, was established by the Norwegian Parliament in 1997. Norfund’s objective is to contribute to reduce global poverty through contributing to the growth of sustainable commercial enterprises in developing countries. Norfund provides risk capital to private companies in selected countries and sectors. Main focus areas are clean energy projects, financial institutions, agribusiness and financing of small and medium sized companies through investment funds.

Norfund has extensive energy sector expertise with direct and indirect investments in more than 50 power plants across emerging markets, supplying electric power equivalent to the demand of 9 million people.

www.norfund.no

 

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