Investec has played a crucial role in supporting Energy Partners (EP) in consolidating and enhancing its financial structure, paving the way for the deployment of innovative business models, which are key to accelerating the decarbonisation of the built environment. This partnership is particularly focused on advancing initiatives of energy efficiency-as-a-Service, such as Cooling-as-a-Service (CaaS), which offers a sustainable, off-balance-sheet solution for businesses, reducing operational risk and allows them to focus on their core activities.
As the mandated lead arranger, debt provider, hedge coordinator, and account bank, Investec facilitated the refinancing of 84 solar, steam, and refrigeration projects for EP, with a capital value exceeding R1.7 billion. This strategic transaction not only enabled EP to refinance its existing debt but also secured additional facilities for growth. Investec’s involvement since 2020 in funding EP’s portfolio has been instrumental in driving these projects forward, and the recent debt raise marks a significant milestone in their collaboration.
The new funding arrangement, which includes a senior debt facility and a construction facility -a fund specifically set aside to finance new projects, hence speeding up processes- has been structured to enhance EP’s operational efficiency and financial stability. The senior debt facility provides long-term funding for EP’s assets, aligning with the company’s revenue profile and improving its cash flow position. Meanwhile, the construction facility,streamlines the funding process for new projects, featuring a pre-approved drawdown mechanism that reduces both cost and time, improving project execution timelines and facilitating the roll-out of Servitisation models like CaaS.
Investec’s Energy and Infrastructure Finance team, in collaboration with the Treasury Sales and Structuring team, managed interest rate exposure, developed a robust hedging strategy, and ultimately enhanced revenue outcomes for EP. This innovative financial framework sets a new benchmark in the South African market, empowering EP to better serve its growing clientele of world-class companies.
Manie de Waal, CEO of Energy Partners Holdings, expressed his gratitude to Investec, stating, “The recent consolidation and refinance of EP’s term and construction funding facilities sets a new benchmark in the South African market for both innovation and efficiency. It enables EP to serve its growing client list of world-class companies even better as we partner for a sustainable future for all. Our sincere gratitude to the Investec team who played an invaluable part in making this happen.”
As a steering committee and strategic partner of the global Servitisation for Energy Transition (SET) Alliance, EP is at the forefront of setting pathways for other companies to follow in the adoption of Servitisation models. Their leadership in this space is key to accelerating the deployment of sustainable solutions that contribute to the decarbonisation of the built environment. With this enhanced financial framework and strong partnership with Investec, EP is well-positioned to continue delivering top-notch services while driving the transition to a more sustainable energy future.
Access the official news of the partnership hereby.
