Kenya – Example transactions

(please note that this is not an exhaustive list – please contact us for more details)

Borrow Base Facility (Kenya):
Advising Sunfunder Inc and other lenders in relation to a borrowing base facility for Sunculture Kenya Limited.

Acquisition of 50MW Power Project (Kenya):
Advising AP Moller Capital in relation to its successful acquisition of the IberAfrica Thermal IPP  in Kenya.

40MW Solar Project (Kenya):
Advising Globeleq in respect of a 40MW solar PV project in Kilifi County, Kenya.

50MW Wind Project (Kenya):
Acting for the lenders in relation to the financing of a 50MW wind farm located in Kenya.

Agriculture microfinance lending (Kenya, Rwanda, Burundi and Tanzania):
Represented OPIC in providing a credit facility to a non-profit African fund providing microfinance loans to subsistence and small-holder farmers in Kenya, Rwanda, Burundi and Tanzania.

Kipeto Wind IPP (Kenya):
Advising an investment fund in relation to its investment in the Kipeto wind power plant in Kenya.

Case Study

Lake Turkana Wind Project (Kenya) [2014]:

Trinity has, since 2009, advised African Development Bank as Mandated Lead Arranger, The Standard Bank of South Africa Limited and Nedbank Limited as co-lead arrangers and the European Investment Bank, FMO, Proparco, DEG, PTA Bank, East African Development Bank as lenders and Eksport Kredit Fonden (the Danish export credit agency) on the $623m Lake Turkana Wind power project, which achieved financial close in 2014 and which reached operations in early 2019.

The project comprises 365 wind turbines (each with a capacity of 850 kW) manufactured by the Danish supplier Vestas. In addition to the wind turbines, an electric grid collection system, a village and a high voltage substation and road upgrades to over 200km of Kenyan roads, as well as internal access roads on the Project site make up the infrastructure paid for and financed by the borrower project company, Lake Turkana Wind Power Limited (LTWP).

The initial developers of the project, KP&P Africa, were a consortium of Dutch and Kenyan businessmen. In 2009, they joined hands with Aldwych International (who already had experience of closing IPPs in Kenya with the Rabai power plant). A collection of Nordic development finance institutions, including the Industrial Fund for Developing Countries, Finnish Fund for Industrial Cooperation Ltd and Norwegian Investment Fund for Developing Countries made up the balance of the equity, together with the turbine supplier Vestas and a minority local shareholder.

At the time of financial close the project was the largest single private sector investment in Kenya and, at up to 310.25MW, the biggest wind farm on the entire African continent. The low cost electricity produced by the plant and provided to the Kenyan national grid is equivalent to nearly 17% of the currently installed generating capacity of Kenya.

The deal had a unique public-private aspect in terms of generation (private sector, by LTWP) and transmission (with the ancillary 428km transmission line being procured and delivered by the public sector).  The African Development Fund (for whom Trinity acted under a separate instruction) applied its first partial risk guarantee to the associated T-line to mitigate T-Line delay risk (which was otherwise covered by delay payment obligations of the Kenyan Government to the Project Company and its Lenders).

Project Finance International African Renewables Deal of the Year (2014) and IJ Global Europe & Africa Renewables Deal of the Year (2014)

Off-Grid Financing (Kenya):
Advising BBOXX in respect of financing its activities in Kenya

Partial Risk Guarantee (Kenya):
Representing the African Development Fund in providing a partial risk guarantee supporting the obligations of the government and the transmission utility in connection with a transmission interconnector to be constructed in connection with the Lake Turkana independent wind power project in Kenya.

Refinancing of Olkaria III Geothermal IPP (Kenya):
Advising the incumbent lenders, DEG, EAIF, Proparco and FMO, in relation to the refinancing and restructuring of the Olkaria III geothermal project in Kenya.

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