ZAMBIA – Zambia’s Copperbelt Energy Corporation (CEC) has successfully listed Zambia’s first Green Bond on the Lusaka Securities Exchange (LuSE), marking a significant milestone in sustainable financing for the country.
CEC intends to use the funds raised through the green bond to finance renewable energy projects.
Listed last week at pf-word suggestion00 million, the bond will be managed by CEC’s subsidiary, CEC Renewables (CECR).
The private power generation company supplies electricity to the Copperbelt region in Zambia, serving primarily large mining companies.
The initial tranche of bonds raised US$54 million of the required US$200 million from the lead arrangers, Cygnum Capital and Emerging Africa Investment Fund (EAIF), as cornerstone investors, in partnership with South Africa’s Absa Group.
“We are proud to have been the lead arrangers for CEC’s Green Bond,” said James Doree, a representative of Cygnum Capital.
“It demonstrates how a strong sponsor, a transparent policy framework, and supportive anchor investors can drive private sector solutions for the green energy transition.”
Paromita Chatterjee, a representative of the Emerging Africa Investment Fund, a company under the Private Infrastructure Development Group (PIDG), expressed excitement about being the cornerstone investor in the first Zambian green bond program.
He added that he is confident that this financing avenue will complement traditional financing options to expedite the energy transition.
“Our collaboration with the sponsor has made it possible to implement innovative financing,” said Theuns Ehlers, Head of Project Finance at Absa Group.
“Having a sponsor with robust operational and financial capabilities has enhanced the structuring and bankability of a private-to-private project finance bond raise. We are very proud to be associated with this transaction,” he said.
Adding to the conversation, Nonde Sichilima, the Director for Market Supervision and Development at the Securities and Exchange Commission, stated, “The registration of the Green Bond is a positive development for our capital markets.
“We anticipate that it will catalyze the listing of more green bonds as a means of raising capital for green initiatives and contribute to deepening capital in our country.”
Recently, CEC secured a substantial investment of US$145 million from Affirma Capital, Norfund, and Kommunal Landspensjonskasse (KLP) to amplify its renewable energy capacity.
This injection of capital aims to bolster CEC’s prominent role in Africa’s decarbonization efforts. It aspires to expand renewable energy capabilities, extend electricity access in Zambia and the Democratic Republic of Congo (DRC), and actively participate in the liberalization and transformation of the electricity market in Southern Africa, state the involved companies.
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