African energy developer Anjana Electric Group (AEG) and Convergence Partners Energy Finance (CPEF) have signed indicative terms for a $20 million structured investment to support the expansion of Anjana's energy platform across Africa.
The deal – announced on the sidelines of the Africa Energy Forum in Cape Town – will strengthen AEG's project pipeline and support the development of hydropower and power distribution projects across the continent, according to a joint statement.
The funds will be directed towards short-term mergers and acquisitions and project development, with a focus on operational assets and properties under rehabilitation in the group's strategic markets, including the Lobito corridor.
The company's chief executive Brian Kelly said the investment will support AEG's upcoming growth phase and position the company to raise larger capital as it grows its portfolio.
“This proposed partnership provides us with the capital we need at the right time in our growth,” Kelly said.
He said CPEF shares the belief that decentralized hydropower and distribution systems can develop into scalable, bankable assets on the continent.
Laurentius Human, managing partner of CPEF, said the main obstacle to Africa's energy transition is less about financing, but rather about whether financial instruments are tailored to the sector's needs.
“We operate in the area between bankable projects and projects that are able to proceed,” he said, highlighting his group’s operational and sector expertise.
Continent.
The deal is still subject to due diligence investigation, signing of final agreements and internal approvals from both parties.
AEG is active in Eastern, Central and Southern Africa, developing, financing and operating hydropower projects and electricity distribution networks.
AEG is backed by US private investors and Gridworks Development Partners, which focuses on African electricity infrastructure.
Mauritius-based Convergence Partners Energy Finance, the group's investment arm, provides mezzanine and structured financing to African energy and technology firms, helping them grow without giving up equity early.
AC/SF/FSS/JN/APA