Norton Rose and Al Kamel Law on the acquisition of Lekela Power
Infinity Power Finalizes Acquisition of Lekela Power in Africa’s Biggest Renewable Energy Deal
Norton Rose Fulbright, Al Kamel Law, Cantor Fitzgerald, Absa CIB, Ernst & Young and AFRY advised Infinity Power on the transaction.
Absa CIB and MCB acted as the Mandated Lead Arrangers on the acquisition financing facilities.
Infinity Power, a joint venture between Egypt’s Infinity and UAE’s Masdar, has completed the acquisition of Lekela Power, an Africa-based wind power platform, making it the largest pure-play renewable power company on the continent. The transaction was funded through equity investment from shareholders and debt from Absa Corporate and Investment Banking and Mauritian Commercial Bank. Infinity’s operational portfolio now stands at 1.3 GW, with an impressive pipeline of 13.8 GW, delivering on its COP27 promise to become Africa’s fastest-growing renewable energy company.
Lekela Power currently operates 1 GW of wind power projects in South Africa, Egypt, and Senegal, with a pipeline of 1.8 GW in various stages of development. The acquisition is expected to help improve energy access, boost economic development, and create jobs, especially in remote areas.
Established in 2020, with key stakeholders include Africa Finance Corporation (AFC) and European Bank for Reconstruction and Development (EBRD), Infinity Power aims to develop utility-scale and distributed solar energy and wind power projects in Africa. Its total operational capacity of 1.3 GW equates to reducing over 3 million tons of CO2 emissions per year using conventional power generation. The company’s ambitious project pipeline of 13.8 GW is poised to accelerate Africa’s renewable capacity growth, as the International Renewable Energy Agency predicts the continent’s installed renewable capacity to increase from 54 GW in 2020 to more than 530 GW by 2040, providing access to electricity to nearly half of Africa’s population.
Established in 2015, Lekela Power was previously owned 60 percent Actis, a global investor in sustainable infrastructure, and 40% by Mainstream Renewable Power Africa Holdings (MRPAH), a consortium led by global wind and solar company Mainstream Renewable Power, which was founded in 2015.
Africa’s installed renewable capacity is set to grow from 54 GW in 2020 to more than 530 GW by 2040, according to the International Renewable Energy Agency (IRENA), with solar PV soaring to 340 GW, and wind rising to 90 GW.