Copperbelt Energy’s $200 million green bond reportedly draws strong investor interest

Copperbelt Energy Corporation PLC’s (CEC) US$200 million Green Bond has reportedly attracted strong interest from both local and international investors, earning the title of “Bond of the Year” at the IJGlobal Awards 2024.

Issued in December 2023 through its subsidiary, CEC-Renewables, the Green Bond Medium-Term Note Programme was designed to finance renewable energy projects, primarily focused on solar power.

CEC’s Head of Corporate Communications and Investor Relations, Verona Mwila Nkolola, claimed that the bond drew significant interest from investors across various markets.

Read more: Copperbelt Energy reportedly leverages regional integration to address Zambia’s energy shortfall

In a notice to clients, Nkolola noted that the first tranche of US$53.5 million was oversubscribed by 178 percent, while the second tranche of US$96.7 million saw a 230 percent oversubscription.

“This overwhelming response reflects the growing confidence in both green bonds as a viable financing tool for the development of green projects and the company’s strategy,” she said.

CEC had been at the forefront of Zambia’s renewable energy transition through projects like the 34MWp Riverside Solar PV Project, commissioned in 2023, and the 60MWp Itimpi I Solar PV Project, launched in April 2024.

“The proceeds from the second Green Bond tranche are funding the development of the 136 MWp Itimpi II Solar PV Project. Collectively, these projects will add a total of 230 MW of renewable energy to Zambia’s electricity grid,” Nkolola added.

The successful issuance of Zambia’s first Green Bond was reportedly achieved through collaboration with key partners, including Cygnum Capital, Stanbic Bank Zambia, Moira Mukuka Legal Practitioners, Bowmans, Trinity International, the Lusaka Securities Exchange, and the Securities and Exchange Commission.

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