Solvanta Renewables — Funding Requirement & Capital Stack
The R9.5 billion sponsor raise, the full capital stack including project debt and the mezzanine layer, and the funding partner strategy underpinning Solvanta.
Section 18 · Business Plan
Funding Requirement & Capital Stack
The R9.5 billion sponsor raise, the full capital stack including project debt and the mezzanine layer, and the funding partner strategy underpinning Solvanta.
The sponsor raise
Solvanta seeks a R9.5 billion equity raise allocated across solar
development (R3.2 billion), wind development (R2.8 billion), battery
storage (R1.6 billion), transmission and wheeling infrastructure (R900
million), development costs (R500 million) and working capital (R500
million). Equity is drawn in milestone-gated tranches matching the
model’s requirement path: R941 million (FY2027), R1.14 billion (FY2028),
R2.32 billion (FY2029), R3.22 billion (FY2030) and R1.88 billion
(FY2031).
The full capital stack
| Layer | Amount | Share | Pricing | Provider universe |
|---|---|---|---|---|
| Senior project debt | R21.0bn | 60% | ~11.0% blended | IFC, DBSA, IDC, AfDB; Investec, Nedbank CIB, Standard Bank CIB |
| Mezzanine / holdco facility | R4.1bn | 12% | ~14.5% | Infrastructure credit funds; DFI subordinated windows |
| Sponsor equity (this raise) | R9.5bn | 27% | Target 20%+ IRR | Institutional equity, infrastructure funds, IPPs |
| Operating cash retained | R0.3bn | 1% | n/a | Internal generation |
feature, not a contingency
The independent model draws R4.1 billion of mezzanine in FY2031 after
the R9.5 billion equity is fully deployed, it funds the final 900 MW
acceleration and cannot be avoided within the sponsor’s build schedule
at benchmark costs and 65% senior gearing. Options to eliminate it,
slowing Phase 5 by 12 months, raising senior gearing to 72%+, or
upsizing the equity raise to ~R13 billion, each carry their own IRR or
credit consequences. Investors should treat the FY2032 platform
refinancing (green bond or portfolio term-out) as the mezzanine take-out
and price its execution risk.
Funding partner strategy
The senior programme targets the DFI-commercial blend that has
financed every major SA renewable platform: IFC, DBSA, IDC and AfDB
anchoring 40–50% of facilities with concessional tenor and pricing,
syndicated alongside Investec, Nedbank CIB and Standard Bank CIB, the
three banks with the deepest REIPPPP books. Investec’s financing of
Mainstream’s flexible-PPA solar plant is the direct precedent for the
FlexPower asset class. DFI participation additionally imports IFC
Performance Standards compliance, strengthening the ESG proposition to
equity investors and corporate offtakers.
Confidential — this business plan is provided to prospective investors and lenders for evaluation purposes only and may not be reproduced or distributed without the written consent of Solvanta Renewables (Pty) Ltd.