Quarter 4, 2019
Metier Sustainable Capital Fund II (MSC II) first closing
Metier has received USD 113 million in commitments and has called a first close of its second Sustainable Capital Fund, MSC II. The fund will strengthen renewable energy, energy efficiency, water and waste management investments in sub-Saharan Africa.
“MSC II target projects and partners which deliver social and environmental benefits as well as returns on financial capital. For the first time in history the lowest cost and emission energy solutions are aligned which we hope to catalyse with a differentiated strategy tailored for the African environment. Included in the mandate are the sectors of water and waste efficiency which we anticipate will benefit from pent up demand and acute shortages. ” says Marc Immerman, a director of Metier.
“Our desire is to make a difference and this asset class is driven by a supportive policy framework. Hence, we are delighted with the first close to support Africa’s development objectives and environmental commitments” says Anthony Hewat, a co-founder of Metier.
MSC II targets investments in select African countries and secured commitments from Germany’s development finance institution DEG - Deutsche Investitions- und Entwicklungsgesellschaft mbH, Dutch entrepreneurial development bank FMO (Financierings-Maatschappij voor Ontwikkelingslanden N.V.) and Proparco (the private sector arm of the French Development Agency), all of whom have previously invested with Metier in either their growth or sustainable capital funds.
“Our new investors in this first closing include the European Investment Bank, the CDC Group Plc (the development finance institution owned by the UK government), Norfund (the Norwegian Investment Fund for developing countries) and Swedfund International AB (the Swedish development finance institution), all of whom are backing us and we look forward to partnering with them for financial and impact returns and contributions to the United Nations Sustainable Development Goals: #6 (clean water and sanitation) #7 (affordable and clean energy), #11 (sustainable cities and communities), #12 (responsible consumption and production) and #13 (climate action)” says Paul Botha, co-founder and CEO of Metier.
The MSC II Principals; Marc Immerman and Mike Goldblatt are seasoned investment executives with over twenty five years of experience between them in clean infrastructure and resource efficiency investing and development.
J-P Fourie, head of investor relations at Metier, added that “The MSC team have delivered developments and investments spanning multiple renewable energy technologies including wind, solar photovoltaic, concentrated solar thermal and micro-hydro throughout Africa. Building on this expertise we hope to attract additional commitments from commercial investors and other development finance institutions”.
MSC II is the tenth capital pool for the Metier team, which has worked together for over three decades and collectively has a track record of over 100 strong performance deals. Metier’s successful predecessor Sustainable Capital Fund of 2012/13 invested in eight portfolio companies, the most recent of which is a water and wastewater treatment business, that builds and operates treatment plants with a recent strategy of taking ownership in water efficient infrastructure.
Quarter 2, 2019
MCGF II and South Africa-based Rand Merchant Bank agree to participate in a recapitalisation of Vox in partnership with management in September 2019, to support fiber rollout outside of South Africa’s main cities and to the country’s small businesses.
Metier Sustainable Capital Practice partners with water treatment and wastewater treatment business, Tecroveer. Tecroveer has a successful track record through diversifying its offerings to include potable water solutions and industrial water treatment in addition to undertaking research, development and manufacturing of related equipment.
Quarter 1, 2019
Start of operations of the Kathu Solar Park: A 100 MW Concentrated Solar Plant and one of South Africa’s largest renewable energy projects.
Metier is pleased to announce that start of commercial operations on 30 January 2019 for the 100 MW Kathu Solar Park project (KSP) in which Metier, via its sustainable capital funds, partnered with independent power producer Engie.
KSP is a state-of-the-art Concentrated Solar Power (CSP) plant with parabolic trough technology and equipped with a molten salt storage system that allows for 4.5 hours of thermal energy storage to provide reliable electricity in the absence of solar radiation and during peak demand. The KSP site covers approximately 4.5 km², with 384,000 solar collector mirrors.
The project is funded by a mixture of debt and equity provided by the shareholder consortium and a club of South African banks. KSP was the largest project-financed transaction in South Africa in 2016.
The project will sell power to the Off-Taker under a 20-year power purchase agreement and will provide clean and reliable energy to the national power grid, equivalent to 179 000 homes or about 7.4% of the Northern Cape’s energy use. In addition to this, it is estimated that the project will save six million tons of CO² over 20 years. As a R12 billion investment, built with 45% local content, the project has already made a significant contribution to the South African economy and will continue to foster local development during operations. At peak employment there were 1 700 workers on site and 42% of the workforce was hired from the local community. The plant will permanently employ 81 people during operations.
KSP will further support local business through the sourcing of services from local entrepreneurs. The project has also implement a socio-economic development programme in the district and has established the locally-owned Kathu Solar Park Trust, which owns 2.5% of the project.
Co-investors, alongside Metier, include the FMO, the Dutch development bank and DEG, the German investment and development company. Metier, DEG and FMO were involved in the project prior to it being bid into the Department of Energy’s renewable energy procurement programme and played an active role in the bid submission and in management during construction, including ensuring adherence to best practice environmental and social standards.
KSP won the “The Deal of the Year” category at the fourth edition of the African Utility Week Power Awards on 2017 and the IJ Global Award 2016 for the African renewable project in 2016 and we look forward to the project continuing to be an important contributor to the energy sector and economy in the years to come.
On 7 November 2018, shareholders were informed of a firm intention, whereby MCGF II had made an offer to acquire 100% of the issued shares of Master Plastics, other than those held by the CEO, Manley Diedloff. The transaction implemented by way of a scheme of arrangement and a shareholder meeting was convened on 20 December 2018 whereby 100% of those shares present and voting voted in favour of the proposed transaction. The transaction has fulfilled all conditions precedent and the transaction closing date was 4 February 2019.