RMBfinances30MWcleanprivatepowerforHarmony

 

Client challenge

Harmony is an experienced emerging market gold miner and the largest gold producer in South Africa. It required uninterrupted power supply at a reasonable cost. Due to the deregulation of the energy sector, there was a need to quickly partner to find a long-term cost-effective solution that is positive for both the client and the country, which has not to date been tackled within the sector.

RMB's solution

RMB has a long-standing relationship with Harmony. Through our relationship with AIIM, ACED and Mahlako Financial Services, we were able to unlock significant value for Harmony by minimising the tariff they will end up paying for this green energy. The three projects combined have an installed capacity of nearly 30MW, for a total cost of ~R520m.

As the sole mandated lead adviser, we provided a long-term project financing solution for the development, design, construction, operations and maintenance of three solar renewable projects. The Independent Power Producers (IPPs) will sell renewable energy to Harmony through long-term Power Purchase Agreements, at cost-effective tariffs with a predictable price path for the next 15 years, while at the same time generating an acceptable return for the shareholders of the IPP.

Client enablement

Harmony is receiving consistent and predictable pricing and power, while still satisfying the other partners of the relationship. It also enables Harmony to provide much needed generation capacity onto the grid. The deal will reduce scope II carbon emissions for Harmony, provide cheaper and cleaner energy and a more predictable price path – ensuring that Harmony realises their decarbonisation goals.

Client	Harmony
Size of the deal	R520m
Sector	Infrastructure and Renewables Mining and Metals
Capabilities	Infrastructure Sector Solutions
RMB's role	Adviser Sole Mandated Lead Arranger
Country	South Africa