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Standard Bank partners with Seriti in SA renewable deal

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Aerial view of three wind turbines in the early morning fog at sunrise in the English countryside

Standard Bank partners with Seriti in SA renewable deal

Standard Bank Group has partnered with Seriti Resources Holdings (Seriti) to successfully reach financial close on its acquisition of wind-powered renewable energy company, Windlab Africa.

Seriti acquired the company through its recently established subsidiary, Seriti Green – a new renewable energy player in South Africa.

Seriti is a major coal supplier in South Africa, contributing 46% of Eskom’s coal production. With its entry into renewables, through the formation of Seriti Green and the acquisition of Windlab Africa, Seriti is diversifying its energy portfolio, lowering its carbon footprint, and supporting South Africa’s just transition to a lower carbon future.

Standard Bank acted as the sole financial advisor to Seriti Green, having introduced the Windlab opportunity. Standard Bank is also an equity partner to Seriti on the deal and provided funding for Seriti Green management and their strategic partner.

“When Seriti was keen to explore growth through renewable energy, we not only connected them to Windlab Africa, but facilitated the acquisition every step of the way, demonstrating our market leading sector insights and ability to understand and fulfill the needs of our clients to ensure value creation. This was a unique transaction in that we initiated, facilitated and advised on the transaction, while also taking a direct equity position in Seriti Green and funding management and their strategic partner,” says Rentia van Tonder, Head of Power at Standard Bank. “We are delighted to see this important deal reach financial close and are proud of the role we have played.”

Earlier this year, Standard Bank launched its climate policy, wherein it committed to partnering with its clients to support their transitions. The Group also committed to mobilise a cumulative amount of between R250-billion and R300-billion for sustainable finance by the end of 2026. This target includes R50-billion of financing for renewable energy and underwriting of a further R15-billion for renewable energy by the end of 2024.

This transaction demonstrates Standard Bank’s commitment and ability to partner with clients by bringing to bear a full banking solution across multiple products and sector expertise to support Seriti on their energy transition journey towards becoming a diversified energy group.

“Leveraging our sector team’s market leading insights and our integrated African platform allows us to provide an unmatched renewables advisory offering through our ability to understand and fulfill our client’s needs. We believe that delivering advice and capital solutions that demonstrate creative thinking and unrivalled access across the ecosystem is critical to our ongoing success, and we are proud to have advised Seriti on this landmark deal,” says Bryan Antolik, Executive, Advisory at Standard Bank.”

Through this transaction, Seriti Green will become an independent power producer, creating accessible and affordable renewable electricity in South Africa, while also contributing to the country’s energy security and reducing the need for carbon-based energy sources. Seriti Green will acquire a pipeline of projects under development of around 3GW, mainly focusing on captive power solutions but with the ability to also feed into the national grid.

“This acquisition is a significant landmark on Seriti’s journey to becoming a diversified energy business and supports our ESG objectives and commitment to a just energy transition,” said Mike Teke, CEO of Seriti. “We need to be moving towards a lower carbon future through investing capital from coal into green energy. It is not only the right thing to do, but it makes business and societal sense”.

“Standard Bank is honoured to be playing a leading role in shaping and financing the renewable energy sector in South Africa. This transaction and the central role we have played in it from ideation to reaching financial close represents yet another important milestone on our sustainable financing journey on the African continent,” says Justin Bothner, Head Investment Banking South Africa at Standard Bank Group. “Fostering trusted partnerships is fundamental to this journey as we set out to power positive impact together with our clients.”

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