Investec and Nedbank have lent R1.5bn (about US$150mn) to a wind project in the Western Cape, South Africa.

The debt is part of an overall financing package of R2.2bn, with the rest of the capital coming in the form of equity. The sponsor is GDF Suez, a French utility company.

The 94MW wind project is part of the South African government’s Renewable Energy Independent Power Producer Procurement Programme (REIPPPP), a series of renewables projects signed on 20-year power purchase agreements with the South African national utility company Eskom.

This project is due to reach commercial operation mid-2015 and is one of many wind projects GDF Suez is sponsoring in Africa, including the 300MW Tarfaya project in Morocco.

Commenting on the deal, head of project and infrastructure finance at Investec Fazel Moosa says: “Given the unprecedented debt and equity financing requirements of the renewables programme, Investec will continue to utilise its capacity to provide debt and equity financing in support of this impressive governmental initiative.”