Today before the opening bell, Dominovas Energy announced that it has established critical relationships with financing partners included within the scope of the Power Africa Initiative. Using its status as a Private Sector Partner, Dominovas Energy said it looks forward to exercising its direct access to Power Africa’s committed government, public and private sector lenders, such as Goldman Sachs (NYSE: GS), Barclays (NYSE: BCS) and Standard Bank, and global development finance institutions (DFIs), such as the Overseas Private Investment Corporation (OPIC) and the Africa Development Bank (AfDB). GE Capital veteran Eric Fresh will be responsible for leading and managing the company’s project finance and investment activities, its capital investment, and deployment programs, as well as the coordination with Power Africa Partners.
“As a member of the Power Africa Initiative, we have a vested interest in ensuring the Initiative’s success by employing all of its available resources, including engaging its committed financing partners in dialogue about our project level capital needs,” said Mr. Fresh, Senior VP, Finance & Investment, in a recent interview. “With a captive audience of highly specialized project finance lenders and investors, we have an amazing opportunity to secure the type of structured equity and debt financing necessary to successfully deploy our RUBICONTM systems throughout sub-Saharan Africa.”
According to Mr. Fresh, “When domestic financial institutions in Africa lend at rates in excess of 18-20% per annum, most, if not all, large infrastructure projects in Africa require at least minimal involvement from the DFI community to access sufficiently flexible financing solutions to fund projects in countries with challenging credit profiles. While offering some level of increased comfort, the credit solutions provided by DFIs enhance the bankability and profitability of power projects in Africa for investors and private sector lenders by structuring credit facilities with longer tenors and lower interest rates; and by offering political risk insurance (PRI) and partial risk guarantees (PRG) through MIGA and the World Bank, respectively, to mitigate non-commercial risks.”
With respect to financing electricity generating systems that fall under the Power Africa Initiative in developing / emerging markets of sub-Saharan Africa, these affiliated financial institutions have committed to support the initiative by catalyzing private investment. Mr. Fresh added, “The institutions with which Dominovas Energy is actively engaged in project financing discussions create tremendous options in terms of financing power systems, on a multi-megawatt scale. For instance, OPIC can provide debt financing and political risk insurance to spur development investment.”
“Just as we have established a world-class team of OEM partners, Dominovas Energy now has a strong base of support from strategic financing partners capable of delivering billions of dollars of project capital in sub-Saharan Africa and beyond, over the next 5-10 years.”
Having the ability to identify and engage viable financial institutions provides Dominovas Energy the opportunity to capture future revenue streams, as supported by its executed and guaranteed power purchase agreements (PPAs). The value derived for project finance-based platforms is recognized by virtue of signed and executed PPAs, which define both costs and margin for delivery of electricity. As such, Dominovas Energy continues to exude confidence and excitement regarding its prospects for delivering on its mandate of creating clean, commercially-viable, reliable, and sustainable energy solutions to global and bankable emerging markets.
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