Indian energy giant Tata Power has achieved financial closure for one of its South African wind projects, with another due to conclude within the week.

Non-recourse financing for the 134MW Amakhala Emoyeni wind farm project was secured by Tata Power through Cennergi, its South African joint venture company with Exxaro.

Cennergi was set up by the power company and coal producer last year in a bid to become the leading clean energy independent power producer in southern Africa.

Cennergi raised the entire debt requirement for the project – a total of R3.2bn – from two lenders: Standard Bank (the mandated lead arranger) and the International Finance Corporation (IFC).

The total cost of the project amounts to R3.95bn and is being funded through a debt equity mix of 80:20.The financing agreements were signed on May 9, and the first loan disbursement was received on June 3.

The wind farm is located near Bedford in South Africa’s Eastern Cape province.

The company’s other Eastern Cape-based wind project, the 95MW Tsitsikamma community wind farm, is expected to achieve financial closure in a week.

A Cennergi spokesperson tells GTR that the mandated lead arranger on this project is Nedbank, with Standard Bank providing additional financing. The deal amount remains confidential.

Both projects are expected to begin commercial operations in 2016.

Last year, South Africa’s department of energy selected Tata Power as the preferred bidder for the two wind farm projects. Power purchase agreements and implementation agreements for each were signed with Eskom and the department of energy on May 9.