Kibo Energy to acquire 100-MW solar project in Zimbabwe

Renewables developer Kibo Energy Plc (LON:KIBO; JSE:KBO) has agreed to acquire a 100-MW solar project in Zimbabwe from Broomfield International Ltd for GBP 10 million (USD 13.2m/EUR 12m) in stock.

The transaction concerns the solar project in Victoria Falls that will be developed in phases, starting with a 5-MW portion seen to become operational by the end of next month and a further 20 MW before December 2022. The facility will be hooked to the Hwangwe-Victoria Falls national transmission line by way of a simple loop-in loop-out connection.

The project has all necessary permits in place along with long-term, USD-denominated power purchase agreements (PPAs). Upon completion, the plant is expected to deliver an equity internal rate of return (IRR) of around 17.6% and total unlevered free cash flow (EBIT) of some USD 107 million (EUR 96.9m), Kibo estimates.

Broomfield also has some hydro, wind and solar schemes in its portfolio in Africa, representing a potential combined capacity of 160.4 MW. Kibo will have a right of first refusal for each of them, according to the announcement.

(GBP 1.0 = USD 1.320/EUR 1.195)

(USD 1.0 = EUR 0.905)

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