Malawi Stock Exchange-listed conglomerate Press Corporation (PCL) plc has engaged pan-African financial institution, African Export Import Bank (Afreximbank), for investment into the $55.1 million 50 megawatts (mw) solar energy project at Nkhoma in Lilongwe.
The two firms also talked about a possible joint investment in projects at PCL’s subsidiary, PressCane.
PCL Chief Executive Officer Ronald Mangani confirmed to have met Afreximbank officials on the sidelines of the bank’s 32nd annual meetings in Abuja, Nigeria, last week.
In a response to our emailed questionnaire, Mangani said Afreximbank demonstrated appetite to support the projects and was eager to partner with PCL.
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“We held discussions with Afreximbank officials, focusing on the issue of financing our projects, notably the Nkhoma Solar Power Plant being implemented by Press Energy Limited (PEL).
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“We also attracted their interest to finance some of our projects at Ethanol Company Limited and at PressCane Limited,” Mangani said.
The solar energy project is earmarked to generate 50mw of power and feed into the national grid, following the completion of a Power Purchase Agreement between PEL and the Electricity Supply Corporation of Malawi.
According to Mangani, Afreximbank could fund up to 70 percent of the project cost through debt and, if necessary, assist PCL in securing equity investors.
He said the lending appetite was in line with the conglomerate’s financial model.
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“Our interest at this point is to secure the required debt financing from such a source as the bank while as much of the equity as possible should be locally sourced.
“PCL is injecting some 51 percent of the required equity. We are at an advanced stage of securing the residual equity as planned. The discussions with Afreximbank and others are moving us closer and closer to achieving financial closure on the project,” Mangani said.
He said the firm’s main focus as PCL is on implementing the solar project.
“PCL is Pressing On to fulfil its role as a key player and provider of solutions in this economy and beyond while creating value for its shareholders. We thank all our stakeholders for continuing to believe in us and for providing valuable support,” he said.
He said significant progress is also being made to install effluent treatment plants and syrup mill plants “in our two ethanol companies”, in addition to investments in the generation of industrial carbon dioxide.
“Additional by-products that we are taking to the market through the developments in the ethanol companies are bio-gas, fertiliser and electricity,” he said.
Addressing the meeting, Afreximbank President Benedict Oramah cited energy as one of the key sectors the bank is investing in in Africa.
