Absa Corporate and Investment Banking (CIB) provided consulting services and funding for Infinity Power Holding’s acquisition of Lekela Power, another significant transaction in the South African energy market.
Infinity Power, established in 2020, is a joint venture between Egypt’s Infinity Group and Masdar (Abu Dhabi Future Energy Corporation) that aims to generate solar and wind electricity on a utility as well as commercial and industrial scale in Egypt and Africa. Africa Financing Corporation (AFC) and the European Bank for Reconstruction and Development are also important players in Infinity Group (EBRD).
Actis and Mainstream Renewable Power sold Lekela Power, which has operations in South Africa, Senegal, Egypt, and Ghana. With the acquisition of 2.8GW of operational and development wind power assets, Infinity Power will become Africa’s largest renewable energy supplier.
Absa CIB served as the transaction’s Debt and Joint M&A Advisor. We also served as the single Mandated Lead Arranger for the ZAR Acquisition Financing Facility and the joint Mandated Lead Arranger for the USD Acquisition Financing Facility.
The deal was deemed “market-defining” by industry participants and was named “Catalyst Private Equity Deal of the Year 2022” at the Ansarada DealMakers Annual Gala Awards in February 2023.
Our deep industry insight into the renewable energy sector, pan-African multi-jurisdictional financing expertise, experience in executing large and complex deals, and leadership in advising international businesses on acquisitions in Africa enabled us to provide a multi-product client solution encompassing the three pillars of our investment banking franchise – financing, capital raising, and advisory services.
According to Hasnen Varawalla, Managing Director and Co-Head of Investment Banking Origination at Absa Securities UK:
“Absa is privileged to have advised and financed Infinity Power on the acquisition of the pan-African Lekela Power renewable energy portfolio in the largest ever transaction of its kind in the sector, on the continent.”
Mohamed Ismail Mansour, Chairman, Infinity Power said: “Having successfully finalized the Lekela acquisition, we will build upon this milestone to reach our target of installing and operating 2 GW of greenfield projects by 2025. With this transaction, we have delivered on the promise made during COP27 of being the fastest-growing renewable energy company in Africa. We continue to drive efforts that reduce carbon emissions, increase renewable energy sources, and develop efficient energy solutions for the entire region, in order to achieve our vision of providing clean, reliable and affordable electricity access to people in underserved communities across Africa.”
Varawalla concluded: “This transaction underscores our commitment to promoting sustainability in the energy sector and attracting international investment into Africa. We wish Infinity Power and its partners continued success in the future”.
