The Copperbelt Energy Corporation Plc (CEC) has registered its first US$200 million green bond on the Securities and Exchange Commission (SEC).
The registration was done on the side-lines of the COP 28 Climate Summit in Dubai on Tuesday.
It was a first for Zambia’s capital markets and is expected to attract more green finance in the country.
Making the announcement during the Climate Summit in Dubai, United Arab Emirates, on Energy Day, CEC Managing Director, and Chief Executive Officer, Owen Silavwe, said the proceeds from the bond would accelerate the actualisation of the firm’s ambitions to generate at least 200 megawatts of renewable energy.
This was specifically on solar energy with possible storage implementation.
“We are pleased to announce the registration of our US$200 million Green Bond, structured as a programme, whose proceeds will accelerate the actualisation of our ambitions to generate at least 200MW of renewable energy and specifically solar energy with possible storage implementation.
“We began our renewable energy journey, particularly in solar generation five years ago and our announcement today is an affirmation of our commitment to support Zambia’s green energy transition,” Silavwe said.
The US$200 million bond programme has its first tranche of US$54 million, closing by the end of the year.
The lead arrangers of the Green Bond are Cygnum Capital, with Emerging Africa Investment Fund (EAIF), as cornerstone investors in partnership with Absa Group.
Speaking at the same function, Green Economy and Environment Minister, Collins Nzovu, said Government had developed a Green Growth strategy, which was part of its aspiration to become a prosperous middle-income country by 2023.
Nzovu explained that the Green Growth strategy was Zambia’s blueprint for greening the economy and the environment by deliberately pursuing a development trajectory that was resource efficient, low carbon, climate resilient and socially inclusive.
“Government has put in place two regulatory frames that are being leveraged to raise green investments, these being the Green Bonds Framework issued by the Securities and Exchange Commission in 2019 and the Green Loans Framework issued by the Bank of Zambia,” he said.
The Minister congratulated CEC for successfully registering the country’s first Green Bond, further commending the private sector’s leadership in showcasing Zambia’s prowess in the green energy transition.
Meanwhile, SEC Director for Market Supervision and Development, Nonde Sichilima, anticipates that the development would catalyse the listing of more green bonds as a means of capital raising for green initiatives and contribute towards deepening capital in the country.
“The announcement of the registration of the Green Bond is a positive development for our capital markets,” he said.
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