Stanlib buys R2bn finance debt facility from Standard Bank

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This will increase our capacity to do more infrastructure deals, and do them quicker: Stanlib private equity portfolio manager Marisa Bester.

You can also listen to this podcast on iono.fm here. ADVERTISEMENT CONTINUE READING BELOW FIFI PETERS: Let’s get to the latest potential happenings in the infrastructure space right now. Asset management group Stanlib came out with an announcement today saying it has received more firepower to invest in the infrastructure complex. We’re told all the time that this is the backbone for economic growth, the bedrock for economic growth.

It is geared towards institutional investors, meaning pension funds in South Africa. We’ve been able to deliver diversified and stable risk-adjusted return for them over the last 10 years. It’ll benefit our investors as well that the capital that they put into the fund will be deployed faster as we will have certain transactions on the go, or it’ll refinance this facility on a revolving basis.

MARISA BESTER: The majority of our assets – actually 23 different renewable energy plants, which we call ‘utility-scale plants’ because they are quite big – provide power to the national grid. These are typically around 100 megawatts and could power quite a few towns, each of those plants on their own. Some of those have been operating for around eight years, and some of them more recently for around two years, and we have invested in 23 of these different plants across the country.

Our focus is very much on the long term. We assess the revenue stream that is likely to be gained from this type of investment over a typical 20-year period. For example, for these power deals there is in most cases a power-purchase agreement on the other end, which guarantees a certain amount of revenue to that project.

 

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