Private Infrastructure Development Group (PIDG) company, Emerging Africa Infrastructure Fund (EAIF) has been appointed joint mandated lead arranger of the US$30 million debt finance package being raised by Tembo Power to build the Kaptis hydroelectric power plant in Western Kenya.
EAIF, through its manager, Ninety One, will work alongside Finnfund as JMDA. Finnfund, like EAIF, is an impact investor.
Tembo Power, together with its partners Metier and WK Power, will inject some $14 million in equity. Tembo Power aims to have the new plant operational in late 2022.
“I am pleased to welcome EAIF and Finnfund to our consortium for the actual construction of Kaptis,” said Tembo Power’s founder, Raphael Khalifa. “These two lenders are major players in the African infrastructure sector with specific knowledge of Kenya’s regulatory environment and demonstrated success in financing small hydropower projects in Sub-Saharan Africa. This is another significant step towards financial closing later this year.”
“EAIF is delighted to have been appointed the lead arranger of the debt finance for the Kaptis hydro electricity project,” added Paromita Chatterjee, an Investment Director at EAIF manager, Ninety One. “The Fund, with PIDG, brings a unique combination of patient lending, deep knowledge of infrastructure finance and a record of commitment to renewable energy.”