Alpha Namibia Industries Renewable Power Limited (ANIREP) is planning to raise N$570 million to and acquire and develop new renewable energy projects in the country.
The company’s Managing Director, Iyaloo ya Nangolo, told The Brief the money would be raised through a rights issue.
“We think this will be on the market in this last quarter of the year, towards the end of the year, or the beginning of the first quarter next year, so that is our timeline,” he said.
Nangolo, however, said the company is depending on its shareholders to inject fresh capital instead of relying on financial institutions.
“In terms of underwriting, we don’t expect that you need to have underwriting if you are in the renewable energy space, considering our country is importing a lot of power from outside. The environment is such that because of the capacity needed in the country, you don’t need to be underwritten, because the rights issue is dependent on individual shareholders.”
The ANIREP boss added that the N$570 million would be enough to meet the company’s current needs.
“Currently with the pipeline that we see immediately we would be ok. The last time we raised capital, that was three years ago, 2019, and we did very well with what we were given. We think this will be ok for the medium term and we will see what will happen if we are able to close bigger deals, that’s a different story. The vehicle is made in such a way that every time when we have an approved pipeline, we can go do this kind of stuff. So we are happy with our existing pipeline, which is sufficient and going forward we see what the future holds,” he said.
According to its NENS announcement, the funds raised would be used to position the company to play a leading role in the Namibian renewable energy sector.
“The Company is gearing up to play a major role in increasing the commercial installed renewable energy generation in Namibia from the current 150MW to 760MW by 2025. The successful completion of the capital raise would allow the company to increase its market share of renewable energy generation in the country, from 7% as at Feb 2022 (up from 0% in 2020) to its internal target of 30% of the forecasted 760MW by 2025.”
ANIREP said it already has an existing project pipeline where the raised capital will be deployed.
“The project pipeline is expected to finance approximately N$13,000,000 per MWp installed. This is one of the lowest levelised costs of energy in the region, which translates to the total development cost of N$1.4 billion. The capital raised will be utilised for the development of Khan (25MW), Kokerboom (25MW), Otjiwarongo upgrade up to (11MW) with 3MW Regulated Energy Storage System.”
“ANIREP has since achieved a 139% growth in revenue with a healthy pipeline of more than 200MW in development in Namibia. This success comes with stringent cash flow and cost management to implement the development which is underpinned by long-term Power Purchase Agreements (PPA) with off-takers.”
Out of 170MW PV power plants in Namibia, ANIREP’s subsidiary HopSol Africa has been involved in the construction of 120MW.
