ICBC signs R20 billion funding agreement with Standard Bank for the Renewable Energy Independent Power Producer (REIPP) Procurement Programme (linked to #58655)
Constant 2017 USD
Not recommended for aggregates
This project is not recommended for use in creating aggregated sums. See the documentation for more information about this criteria.
This project is classified as an "umbrella" project, and is connected to related projects.
Funding agency [Type]
Industrial and Commercial Bank of China (ICBC) [State-owned Commercial Bank]
Energy (Code: 230)
In April 2013, the Industrial and Commercial Bank of China (ICBC) and the Standard Bank of South Africa signed a R20 billion (approximately USD 2.2 billion) funding agreement to finance renewable energy projects. The two banks will jointly supply debt financing to firms that are granted preferred bidder status under the country’s Renewable Energy Independent Power Producer (REIPP) Procurement Programme. The financing will go towards agreements where the Standard Bank is or will be assigned as a lead arranger of the transactions. The agreement was structured to provide funding in Rands from the capital ICBC accrues from its shareholding in the bank (ICBC is a 20% shareholder in Standard Bank), though it is uncertain how much funding was provided by each bank individually. It is reported that ICBC invested in this project in order to facilitate Chinese investments in South Africa. An objective of the partnership is to facilitate the entry of investors into South Africa and for the development of renewable energy resources in South Africa. Since November 2011, as part of the REIPPP, more than 6,327 MW from 102 renewable energy projects have been awarded. By the end of 2016 the project calls for nearly 3GW connected to the grid.A potential sub-project of the REIPP with financing from the ICBC is recorded in project #58655.
As the exact recipient firms of the REIPP Programme are unknown, the Government of South Africa is coded as the recipient.For the time being, AidData has estimated the contribution of the Chinese state-owned bank by assuming that the two lenders contributed equal amounts (R10,000,000,000) to the loan syndicate.
Number of official sources
Number of unofficial sources
Cofinancing agencies [Type]
Standard Bank of South Africa Ltd. [Private Sector]
Receiving agencies [Type]
Government of South Africa [Government Agency]