CEC raises $200m for mega solar project

By Benedict Tembo

THE Copperbelt Energy Corporation (CEC) has raised US$200 million from the Green Bond for the development of solar energy generation investments of about 200 Mega Watts.
CEC announced the registration of its green bond on the sidelines of the 28th Conference of Parties (COP) of the UN Convention Framework on Climate Change (UNFCCC) from
28 summit December 5 last year in Dubai.

As of December 28 last year, the first US$54 million allotment was fully subscribed.
“This is the level of confidence that we need to create for our capital markets. Suffice to say that, CEC has paved the way for many other institutions to raise green finance for their businesses and contribute to the growth of the market and the sector at large,” minister of Finance Situmbeko Musokotwane said in Lusaka on Friday.

During the occasion to mark the listing of Zambia’s first green bond on the Lusaka Securities Exchange in Lusaka yesterday, Dr Musokotwane congratulated CEC for delivering on the registration of the first green bond for Zambia, and for Zambia’s capital markets.
He said capital markets were essential for economic development as was the case in many other countries, and have a huge potential to make a significant contribution to Zambia’s economic development.

“The reforms that have been developed through the capital market master plan, the green bond and the green loan guidelines, exist for businesses and financial institutions alike, to take advantage of the benefits they offer,” Dr Musokotwane said.

He said the green bond initiative is climate smart and will not only significantly contribute to meeting the increased energy demand arising from the anticipated expansion of the economy, but also enhance climate resilience and adaptation to climate change in the country.

Dr Musokotwane said government developed the capital market master plan which was launched in February 2023.

“This came as a realisation of the significant role that the capital markets can play. For instance, in raising the much required finance to develop and advance the country’s macroeconomic outlook in the medium and long term. Development in the energy sector, especially in power generation and transmission, will be critical in order to anchor the growth of sectors such as mining, agriculture, tourism and others,” he said

“I therefore wish to take this opportunity to call upon many other companies and investors to emulate this example and take full advantage of our business-friendly capital market rules to raise investment funds,” he said.