Financing has been finalised for three renewable energy projects that will provide 520 MW of renewable energy for Anglo American’s mining businesses in South Africa.

Nedbank CIB played a key role in structuring, negotiating and executing this multibillion-rand financing deal for the initial phase of the Envusa Energy ecosystem. Envusa Energy is a joint venture between Anglo American and EDF Renewables, an independent power producer.

Envusa Energy has commenced construction of the Koruson 2 cluster, comprising two wind farms and one solar PV farm developed in partnership with Pele Green Energy and a local community trust, with commercial operations expected around 2026. The generated renewable energy will be wheeled through the Eskom grid to Anglo American Platinum, Kumba Iron Ore and De Beers’ mining and processing operations throughout South Africa.

The renewable energy from these projects will reduce Anglo American’s carbon  emissions by an estimated 1.5Mt annually, enabling it to offset rising energy costs and invest in long-term sustainability.

Nedbank CIB is proud to have partnered with two of its important clients – Anglo American and EDF Renewables – in helping create the Envusa Energy platform and embracing the vision to align Anglo American’s decarbonisation commitments with South Africa’s accelerating energy transition. 

Besides coordinating various workstreams leading to the transaction’s financial close, Nedbank CIB was also a lead arranger, lender, hedge provider, technical bank, insurance bank, facility agent, and account bank, which underscores the bank’s commitment to sustainable and inclusive growth. 

The projects are only the initial phase of the ecosystem and Envusa Energy’s goal is to reach 3-5GW of renewable energy generation. Anglo American is committed to being carbon neutral by 2040. Nedbank CIB shares Anglo American’s conviction that increased energy availability will help catalyse socioeconomic activity and improve economic development and growth prospects in South Africa.

Nolitha Fakude, chair of Envusa Energy and Anglo American’s management board in South Africa, said the attainment of financial close for these three premium renewable energy projects is a pivotal moment in Anglo American’s global decarbonisation efforts, and strengthens South Africa’s resolve for a robust, resilient, and clean energy future.

Tristan de Drouas, CEO at EDF Renewables in South Africa, said: “Collaborating with Anglo American to apply our extensive global expertise in renewable energy infrastructure development, design, and delivery has been immensely rewarding. With Envusa Energy being developed as a jointly owned venture with Anglo American, we have reinforced our long-term commitment to South Africa’s transition to clean energy.”

Envusa Energy is expected to have a positive impact in communities across southern Africa as its renewable energy ecosystem grows. It is exploring black economic empowerment and community partnership models that will enable businesses to grow and host communities to share in the benefits of the wind and solar developments in its project pipeline.

The 1st empowerment initiative includes:

• incorporating a 20% equity investment by Pele Green Energy, an established South African independent power producer, into the 3 project companies that are developing the Koruson 2 assets; and
• establishing a trust to manage the financial interests of local communities.

The Envusa transaction is the latest evidence that South Africa’s accelerating energy transition, with an estimated 22 GW of new private solar and wind power due to come online within the next 3 years, is rapidly and fundamentally changing the electricity generation landscape.

Nedbank CIB is playing a leading role in the transition, supporting projects in the government’s Renewable Independent Power Producer Programme and private developments. It is leveraging its longstanding reputation as South Africa’s sustainability bank to demonstrate its commitment to the just-energy transition, economic growth and the alleviation of pressure on Eskom’s generation and infrastructure capabilities. 

According to a recent briefing by business and the government, independent modelling has identified a 'critical path' that can end load-shedding by the end of 2025 – as long as the required enablers remain in place.

One of these enablers is the willingness of investors and financial institutions to fund renewable energy projects and find the connections that unlock synergies in the developing wind and solar ecosystem. The ability to identify and capitalise on these unexpected connections unleashes multiplier effects that creates sustainable growth.

In the Envusa Energy transaction, for example, Nedbank CIB funds an initiative that allows mines to plumb the depths using sunlight and crush rocks with fresh air, unearthing some of the world’s most valuable minerals and gems. 

Once platinum group metals emerge from Anglo American Platinum’s Limpopo mines and are milled, smelted, purified, and refined, they can be used as a catalyst in clean energy technologies, such as fuel cells and hydrogen electrolysers, and can play a key role in producing green hydrogen from renewable energy sources. This is a virtuous circle with the potential to reduce and eventually eliminate the use of fossil fuels at every point of the compass.

Nedbank CIB’s strategic vision, which integrates environmental, social and governance objectives into its core business operations, makes it the ideal partner for corporates seeking to do the same. The bank’s track record in delivering innovative solutions that drive the bottom line while boosting sustainability, reflects a nuanced understanding of its clients and the communities where they operate. 

Amith Singh, head of Energy Finance at Nedbank CIB, concludes: “Envusa Energy represents a landmark deal that exemplifies Nedbank CIB’s dedication to driving sustainable and inclusive growth across the continent. By supporting clients in transitioning to a low-carbon economy, Nedbank CIB plays a pivotal role in southern Africa’s ongoing journey toward cleaner energy solutions.”