Active Development AidData Chinese Aid

ICBC signs R20 billion funding agreement with Standard Bank for the Renewable Energy Independent Power Producer (REIPP) Procurement Programme (Linked to Record ID#58655)

$10M USD

Funder	Industrial and Commercial Bank of China (ICBC)
Recipient Organization	Government of South Africa
Country	South Africa
Start Date	Apr 02, 2013
End Date	Sep 10, 2032
Duration	7,101 days
Number of Grantees	1
Roles	Recipient
Data Source	AidData Chinese Aid
Grant ID	`31248`

Grant Description

ICBC signs R20 billion funding agreement with Standard Bank for the Renewable Energy Independent Power Producer (REIPP) Procurement Programme In April 2013, the Industrial and Commercial Bank of China (ICBC) and the Standard Bank of South Africa signed a R20 billion (approximately USD 2.2 billion) funding agreement to finance renewable energy projects.

The two banks will jointly supply debt financing to firms that are granted preferred bidder status under the country’s Renewable Energy Independent Power Producer (REIPP) Procurement Programme.

The financing will go towards agreements where the Standard Bank is or will be assigned as a lead arranger of the transactions.

The agreement was structured to provide funding in Rands from the capital ICBC accrues from its shareholding in the bank (ICBC is a 20% shareholder in Standard Bank), though it is uncertain how much funding was provided by each bank individually. It is reported that ICBC invested in this project in order to facilitate Chinese investments in South Africa.

An objective of the partnership is to facilitate the entry of investors into South Africa and for the development of renewable energy resources in South Africa. Since November 2011, as part of the REIPPP, more than 6,327 MW from 102 renewable energy projects have been awarded. By the end of 2016 the project calls for nearly 3GW connected to the grid.

A potential sub-project of the REIPP with financing from the ICBC is recorded in Record ID#58655.

📋 Staff Comments

As the exact recipient firms of the REIPP Programme are unknown, the Government of South Africa is coded as the recipient.For the time being, AidData has estimated the contribution of the Chinese state-owned bank by assuming that the two lenders contributed equal amounts (R10,000,000,000) to the loan syndicate.

📚 Sources & References

China,South Africa : STANDARD BANK inks pact to back renewable energy projects with its single biggest investor
Standard Bank Signs $2.2 Billion Energy Deal With China’s ICBC
Standard Bank signs R20 billion renewable energy finance deal with ICBC
Standard Bank and China's ICBC to fund $2bn in green energy
Standard Bank signs R20bn deal with ICBC to fund renewable energy projects
Standard Bank ICBC to Finance Renewable Energy Projects
Standard Bank
China’s ICBC To Co-Fund S Africa Renewable Energy Projects
Standard Bank sets aside R20bn for renewable energy
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