Absa Corporate and Investment Banking (CIB) has committed R1,6 billion in funding to Phase 2 of the FE Overberg wind project.
With total capacity of 380 MW across phases 1 and 2, FE Overberg will be South Africa’s largest privately developed wind farm once completed. Red Rocket is the independent power producer responsible for developing the project, which is expected to enter commercial operation in 2027.
The additional funding is part of a R3,8 billion total debt package secured for the project, according to a statement from Absa. Phase 2 will supply 150 MW of clean energy to Discovery Green under a 25-year power purchase agreement. Discovery Green’s portfolio of corporate offtakers includes Impala Platinum Holdings, Fortress Real Estate Investments, Balwin Properties, KP Lime and The Capital Hotels and Apartments.
The transaction reflects “the maturity of South Africa’s renewable energy market and the role of private sector-led wheeling solutions in unlocking new generation capacity,” says Colin King, Resource and Project Finance Transactor at Absa CIB.
