The Rockefeller Brothers Fund joined the investor consortium backing Lekela Power, the renewable energy joint venture between private equity firm Actis and developer Mainstream Renewable Energy, which was announce at the end of June. The investment, which has now received shareholder approval, totals $177 million with the consortium providing $117.5 million while Mainstream will be investing the balance.
As we reported at the time, the group of investors providing $117.5 million in equity funding was led by the IFC and also includes Missouri-based Ascension Investment Management and Sanlam, the South African financial services group. According to Bloomberg, The Rockefeller Brothers Fund is investing $10 million.
Stephen Heintz, president of the Rockefeller Brothers Fund said: “I am very pleased the RBF will invest in Mainstream, an investment sourced by our Outsourced Chief Investment Officer, Perella Weinberg Partners, which will bring renewable energy to communities across Africa. I’m confident that if John D. Rockefeller were alive today, he too would recognize the enormous opportunities in the clean energy economy and be at the forefront of the global shift to renewable resources.”
The deal will allow Lekela to continue to build its pipeline of wind and solar projects in Africa. The platform plans to build four more wind farms in South Africa, a wind farm and two solar plants in Egypt, as well as wind farms in Senegal and Ghana with a goal to construct over 1.3GW of new power capacity on the continent by 2018.
First Avenue Partners acted as the global placement agent for the investments. Legal services were provided by Simmons & Simmons and Norton Rose Fulbright for Mainstream and the investor group respectively.