Swedish Export Credit Corporation financing solar power in Angola
Hitachi ABB Power Grids and several other Swedish companies are supplying equipment to solar farms in Angola, which wants to increase the share of sustainable energy in the country. The Swedish Export Credit Corporation (SEK) is financing the transaction, which is guaranteed by the Swedish Export Credit Agency (EKN) and arranged by ING Bank, with an export credit of EUR 560 million.
At present, Angola is largely dependent on fossil fuels for its electricity generation. As a result, the Angolan Ministry of Energy and Water Resources wants to increase the share of sustainable energy in the country and switch to renewable sources such as solar. The major cities are connected to the national power grid but diesel generators are generally used in rural areas to provide villages with electricity.
“A project of this size will not only contribute to the country’s electricity supply, it will also make a difference to, for example, schools and households, in seven locations when solar panels are built. In addition, the cost of solar energy is lower than diesel, which will make this a good long-term investment for the country,” says Carlo Amado, Business Development Director of the MCA Group.
The business project is a successful result of constructive collaboration between many different parties within Team Sweden, not least the Swedish Embassy in Luanda, ING Bank, the construction company MCA/Sun Africa and Swedish companies.
“This project is a prime example of how Team Sweden can help Swedish companies find and win attractive export deals with other countries. The level of commitment and roles played by Hitachi ABB Power Grids and Elof Hansson have been crucial to setting the Swedish flag on the project,” says Maria Hultén, Director at SEK.
Swedish interest
Hitachi ABB Power Grids in Sweden became involved in the project at an early stage. To ensure that SEK could become involved and finance the entire project, the Swedish share of the content had to increase. The Swedish business facilitator, Elof Hansson International, was then brought in, and helped the construction company MCA/Sun Africa to source and facilitate discussions with suitable Swedish suppliers to the project.
“Now we see a project with deliveries from a broad range of Swedish companies within many different sectors. Everything from substations and the steel framework under the solar panels to safety equipment and furniture’s. Hitachi ABB Power Grids in Sweden is the largest supplier and is delivering 50 percent of the Swedish scope of works, while a number of mid-sized and smaller companies account for the remaining share through the partnership with Elof Hansson International,” says Maria Hultén.
Long-term financing
The financing from SEK covers seven photovoltaic projects – two larger projects to be connected to the main grid and five smaller projects in rural areas. The total capacity will be 370 megawatts and make a huge difference for the country’s electricity supply. The loans extend over a long term (18 years) and the estimated construction period is two years. The financing and dialogue with the borrower, the Angolan Ministry of Economy and Finance, was arranged by ING Bank in the Netherlands, which is also the agent for the transaction.
Press contact
Catharina Henriksson, Head of Press and Public Affairs
+46 76-677 59 09
catharina.henriksson@sek.se
About SEK
The Swedish Export Credit Corporation is a state-owned company that finances Swedish exporters, their subsidiaries, and international buyers of Swedish products and services. Sustainability is central to SEK's operations, and therefore it is a natural step to finance the industry's transition to a fossil-free society; a development that also creates new export opportunities. With lending in 65 countries, SEK has substantial knowledge of international transactions and are a natural business partner in export financing.
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