Resus Energy Green Bond for expansion here and abroad
Resus Energy PLC, a renewable energy company in Sri Lanka, is looking at expanding to Uganda in East Africa, amidst the launch of the country’s first green bond issue, which opened on Wednesday, and was subscribed with the company saying that the funds raised will be entirely allocated to renewable energy projects.
The company plans to utilise over 55 per cent of the proceeds to finance an 8 MW solar capacity addition to the national energy grid, which is expected to produce about 15 GWh of renewable energy annually and reduce CO2 emissions by around 10,000 tonnes per year. The projects will be fully owned by Resus Energy and connected to the national grid through substations in Ampara and Pallekele.
Additionally, the company is exploring international expansion, with a potential project in Uganda in East Africa, nearing approval. The World Bank is actively supporting renewable energy development in Uganda, with a focus on expanding access to electricity in rural areas.
Resus Energy issued 10 million senior, listed, rated, unsecured, redeemable green bonds, priced at 100 rupees each. The bond offering includes Type A, with a four-year tenure and an 11.55 per cent annual coupon rate, and Type B, with a five-year tenure and an 11.75 per cent annual coupon rate.
Managing Director Kishan Nanayakkara stressed that raising funds through this bond issuance is more cost-effective than current bank borrowing rates, particularly considering potential future interest rate increases.
Noting the expansion into Uganda, he said the country provides a lot of safety in terms of economy, due to the IMF programme that they are in, as well as the World Funded Energy Projects.
The renewable projects will not only create economic opportunities and boost essential services but also reduce reliance on fossil fuels, aligning with the Paris Agreement’s climate goals and fostering community resilience, He added. Currently, Resus Energy operates 11 utility-scale renewable energy plants in Sri Lanka, with a total capacity exceeding 30 MW and an annual clean energy generation of nearly 75 GWh.
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