Stanbic Bank reaffirms commitment to backing Zambia’s energy sector, says bonds oversubscribed (Video)

Stanbic Bank Zambia has reaffirmed its commitment to supporting the country’s energy sector through financing various projects which include solar to bring in additional power.

The bank cited the 100-megawatt (MW) Chisamba Solar Photovoltaic (PV) Project, led by the Kariba North Bank Extension Power Corporation (KNBEPC), as one of the major projects it had supported this year with other partners such as GreenCo.

Stanbic Bank Head, Corporate and Investment Banking (CIB), Helen Lubamba, said this in an interview with Zambia Monitor at the 97th Agricultural and Commercial Show, officially opened by Botswana President, Duma Boko and President Hakainde Hichilema.

Lubamba said the bank also participated as the underwriter for the second tranche of the Copperbelt Energy Corporation (CEC) Green Bonds that attracted strong interest from both local and international investors.

She stated that bonds with the first tranche of US$53.5 million were over-subscribed by 178 percent, and the second tranche of US$96.7 million oversubscribed by 230 percent.

“This happened in November and the financing was closed last year and we should be hearing about the Commissioning of this project which will bring in additional Solar power this year,” Lubamba said.

She announced that after eight months, the bank had also closed the Kariba North Bank (KNB) Extension Solar PV, which would bring in a 100MW additional power into the system.

Read more: Zambia secures $100 million solar power deal for construction of one of sub-Saharan Africa’s largest standalone energy projects

Lubamba said the project had a strong off take from First Quantum Minerals (FQM) and that the bank was able to finance the entire process working with GreenCo, KNB and Zesco.

She emphasized the need for the country to diversify its energy mix and stop depending on hydroelectric power to avoid economic disruption in the future.

“What is also very critical is about diversifying the energy mix in Zambia. We cannot continue to rely on hydro only. Even if the rains were to improve over the next few years, we must diversify and reduce the reliance on hydro,” Lubamba stated.

She said the effects of climate change had led to disruptions in the economy as it had affected Small and Medium Enterprises.

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