Jindal Energy secures funding

Jindal Energy Botswana project has achieved financial closure for its two ongoing 300MW energy projects being implemented in partnership with Botswana Power Corporation (BPC).Through Indian multinational banking and financial services company, Axis Bank in collaboration with other financial institutions from India, Jindal has secured a USD 190 million (approximately P2,5 billion) for early works, encompassing technical studies, preliminary site preparation.Jindal Group, Head of Treasury Atul Jaiswal said achieving the financial closure is a major step towards turning a bold dream into reality. He said the project is more than just a concrete and steel, it is asymbol of hope and transformation for a generation to come.“Despite its status as a project of national importance, support from the western bank and even a local African subcontinent bank were illusive,” said Jaiswal.He further cited the funding journey was challenging largely due to OECD guidelines and the growing ESG-driven aversion to the thermal core.“Additionally, due to the sheer scale of the project, many financial institutions lack the risk appetite to participate.”Concurring with Jaiswal on the challenges of getting funding for the project, Axis Bank representative, Vishal Mehra said putting up such a large investment for Botswana was not an easy task.“When a client approached us for funding this project, we were kind of shocked,” said Mehra citing that the financiers were not well informed about Botswana and its potential.“This is one of the largest power projects funded by our bank in Africa. So while we are funding the project, we now realize how important it is, the power situation here in Botswana. I hope once this project starts, generating electricity, the local people will get benefit of this project,” said Mehra.On completion, the energy projects are expected to reduce the country’s over reliance on imports, stabilise electricity costs and create an enabling environment for investment and innovation.Meanwhile, Jaiswal said lenders have been lured due to a deep and thorough analysis of the project, strength, the country potential, the credibility of the promoter, Jindal Power in India with a solid fundamental and robust financial matrix.He urged the government to extend full support and cooperation to fulfil the stipulated conditions, to ensure a smooth disbursement of finances and implementation of the project.“In years to come, future generations may take this electricity for granted. For them, it will be a norm. But we, living in this moment, know the true significance of this achievement.He said the Jindal Mmamabula energy project is a strategic infrastructure and not merely about short-term progress.“It is laid on the foundation for long-term prosperity,” said Jaiswal.Commenting on the project, lead consultant on the Mmamabula Energy project from Desai Law Group, Riwzan Desai said statistics demonstrate the project will be one of the largest representations of foreign direct investment (FDI) in Botswana.So far, Jindal Energy Botswana has created more than 1810 employment opportunities and is expected to create approximately 5000 jobs at peak across engineering, civil works, logistics and support services.

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Jindal Energy secures funding