Today before the opening bell, Dominovas Energy announced
that it has established critical relationships with financing partners included
within the scope of the Power Africa Initiative. Using its status as a Private
Sector Partner, Dominovas Energy said it looks forward to exercising its direct
access to Power Africa’s committed government, public and private sector
lenders, such as Goldman Sachs (NYSE: GS), Barclays (NYSE: BCS) and Standard
Bank, and global development finance institutions (DFIs), such as the Overseas
Private Investment Corporation (OPIC) and the Africa Development Bank (AfDB).
GE Capital veteran Eric Fresh will be responsible for leading and managing the
company’s project finance and investment activities, its capital investment,
and deployment programs, as well as the coordination with Power Africa
Partners.
“As a member of the Power Africa Initiative, we have a
vested interest in ensuring the Initiative’s success by employing all of its
available resources, including engaging its committed financing partners in
dialogue about our project level capital needs,” said Mr. Fresh, Senior VP,
Finance & Investment, in a recent interview. “With a captive audience of
highly specialized project finance lenders and investors, we have an amazing
opportunity to secure the type of structured equity and debt financing
necessary to successfully deploy our RUBICONTM systems throughout sub-Saharan
Africa.”
According to Mr. Fresh, “When domestic financial
institutions in Africa lend at rates in excess of 18-20% per annum, most, if
not all, large infrastructure projects in Africa require at least minimal
involvement from the DFI community to access sufficiently flexible financing
solutions to fund projects in countries with challenging credit profiles. While
offering some level of increased comfort, the credit solutions provided by DFIs
enhance the bankability and profitability of power projects in Africa for
investors and private sector lenders by structuring credit facilities with
longer tenors and lower interest rates; and by offering political risk
insurance (PRI) and partial risk guarantees (PRG) through MIGA and the World
Bank, respectively, to mitigate non-commercial risks.”
With respect to financing electricity generating systems
that fall under the Power Africa Initiative in developing / emerging markets of
sub-Saharan Africa, these affiliated financial institutions have committed to
support the initiative by catalyzing private investment. Mr. Fresh added, “The
institutions with which Dominovas Energy is actively engaged in project
financing discussions create tremendous options in terms of financing power
systems, on a multi-megawatt scale. For instance, OPIC can provide debt
financing and political risk insurance to spur development investment.”
“Just as we have established a world-class team of OEM
partners, Dominovas Energy now has a strong base of support from strategic
financing partners capable of delivering billions of dollars of project capital
in sub-Saharan Africa and beyond, over the next 5-10 years.”
Having the ability to identify and engage viable financial
institutions provides Dominovas Energy the opportunity to capture future
revenue streams, as supported by its executed and guaranteed power purchase
agreements (PPAs). The value derived for project finance-based platforms is
recognized by virtue of signed and executed PPAs, which define both costs and
margin for delivery of electricity. As such, Dominovas Energy continues to
exude confidence and excitement regarding its prospects for delivering on its
mandate of creating clean, commercially-viable, reliable, and sustainable
energy solutions to global and bankable emerging markets.
For more information, visit www.dominovasenergy.com
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