TSW Capital has closed five transactions in Africa, concentrated in renewable energy. Three are commercial and industrial solar financings in South Africa; two are equity investments into renewable energy and hydro power on a pan-African basis, including a hydro transaction in Uganda.
Commercial and industrial solar — generation built to supply a single industrial or commercial offtaker rather than the grid — is a financing problem of its own. The asset is straightforward; the credit question is the offtaker and the power purchase agreement behind it. Tenor has to match the PPA, and the lender is in practice taking a view on a corporate counterparty as much as on a solar plant.
We have arranged a USD 15Mn term loan and a USD 7.25Mn term loan for C&I solar businesses in South Africa, along with a USD 5Mn bridge finance facility — bridging being a recurring requirement in this sector, where construction starts before long-term debt is drawn.
Development finance institutions and impact funds are the dominant source of long-tenor capital for African renewable energy and financial institutions, and they are the lenders and investors we work with on the continent. Their processes are slower and more rigorous than commercial lenders — environmental and social assessment, development-impact reporting, procurement conditions — and building that into the timetable from the start is most of the job.
We are also well connected in the private equity ecosystem and can help companies within Africa raise growth equity across consumer, climate, financial services and energy sectors.
We have also raised equity: a USD 10Mn investment into a renewable energy equity fund and a USD 3.68Mn investment into hydro power.
USD 15 Mn Term Loan
USD 10 Mn Equity
USD 7.25 Mn Term Loan
USD 5 Mn Bridge Finance
USD 3.68 Mn Equity
Whether you are looking at an offshore facility, private credit, venture capital or a growth equity round, tell us what you are funding and we will tell you what the realistic options are. If you are a corporate looking for financing from local banks in African countries for your projects, we can be the right advisor for your requirement.
