CEC Renewable Secures US$10 Million in Green Bond Funding

Copperbelt Energy Corporation (CEC) Renewable Limited has announced the second tranche of its Green Bond with a US$10 million subscription.

And ZCCM Investments Holdings PLC (ZCCM-IH) has announced its participation in the Green Bond, which is equivalent to approximately K275 million.

In December 2023, CEC Plc announced the Securities and Exchange Commission (SEC) registration of its US$200 million green bond under a 15-year Medium Term Note (MTN) Programme, a flagship transaction in Zambia aimed at financing the Corporation’s ambitions to invest in renewable energy projects with the capacity to generate at least 200 megawatts of energy with a particular focus on solar energy.

In its first tranche, CEC raised US$54 million, and the proceeds were used to fund the development of Itimpi -1, a 60 Megawatts project on the Copperbelt commissioned in April 2024.

The second tranche of the bond is aimed at raising US$96.7 million that will go towards funding the136 Megawatts Itimpi-2 project, an expansion of 60 Megawatts Itimpi-1 solar PV plant.

ZCCM-IH Chief Executive Officer, Dr. Ndoba Vibetti said this bond which finances the development of solar projects, aligns with the company’s mission of creating tangible wealth sustainably for the benefit of the Zambian people and all its stakeholders.
Dr. Vibetti stated that it also aligns with the company’s strategic focus in growing its footprint in energy, particularly during the ongoing energy crisis, while also lowering the company’s overall carbon footprint.

“ZCCM-IH’s participation in the second tranche of the green bond aims at diversifying the composition of the company’s investment portfolio and enhancing its returns.”

“This is aligned with the company’s 2023-2026 strategic plan that focuses on investments primarily in the mining and energy sectors,” Dr. Vibetti stated.

He explained that ZCCM-IH’s participation is also a testament of the company’s commitment to the development of capital markets in Zambia.

The green bond is privately placed and listed on the Lusaka Securities Exchange (LuSE) that complies with the International Capital Markets Asscoiation (ICMA) Green Bond Principles, including participation from other local investors.

This is according to a statement issued by ZCCM-IH Corporate Affairs Manager, Loisa Mbatha.