06th December 2024, Lusaka Zambia: ZCCM Investments Holdings PLC (ZCCM-IH) is pleased to announce its participation in the second tranche of the CEC Renewable Limited Green Bond with a USD10 million (approximately ZMW275 million) subscription.
The second tranche of the bond is aimed at raising USD96.7 million that will go towards funding the 136MW Itimpi-2 project, an expansion of 60MW Itimpi-1 solar PV plant.
ZCCM-IH Chief Executive Officer, Dr Ndoba Vibetti, highlighted the strategic importance of this subscription:
“Our mission is to create tangible wealth sustainably for the benefit of the Zambian people and all our stakeholders. This bond, which finances the development of solar projects, aligns with this mission and our strategic focus in growing our footprint in energy, particularly during the ongoing energy crisis, while also lowering ZCCM-IH’s overall carbon footprint.”
ZCCM-IH’s participation in the second tranche of the green bond aims at diversifying the composition of the company’s investment portfolio and enhancing its returns. This is aligned with the company’s 2023 2026 strategic plan that focuses on investments primarily in the mining and energy sectors.
This participation is further a testament of the company’s commitment to the development of local capital markets.
In December 2023, CEC Plc announced the Securities and Exchange Commission (SEC) registration of its USD200 million green bond under a 15-year Medium Term Note (MTN) Programme, a flagship transaction in Zambia aimed at financing CEC’s ambitions to invest in renewable energy projects with the capacity to generate at least 200MW of energy with a particular focus on solar energy.
In its first tranche, CEC raised USD54 million, and the proceeds were used to fund the development of Itimpi -1, a 60MW project on the Copperbelt Province commissioned in April 2024.
The green bond is privately placed and listed on the Lusaka Securities Exchange (LuSE) that complies with the ICMA Green Bond Principles, including participation from other local investors.