(Updates with comment from Investec in second paragraph.)
Dec. 1 (Bloomberg) -- Investec Ltd. and the European Investment Bank agreed to start a 100 million-euro ($135 million) renewable energy funding facility in South Africa to benefit from a power shortage in Africa’s largest economy.
The facility “allows us to treat smaller projects with the same project management finance methodology that is usually used for large projects,” Investec Project and Infrastructure Finance Manager Fazel Moosa said today in an interview in Durban, on South Africa’s east coast. It will fund proven technologies such as wind, wave, gas and biofuels, he said.
Loans smaller than 250 million rand ($31 million) will be issued with a ceiling of 500 million rand, he said. Interest rates charged on loans depend on risk and the type of technology used in the projects, Moosa said. Investec, which owns banks and money managers in South Africa, the U.K. and Australia, and EIB will contribute equally to the fund, the two lenders said in a joint statement, e-mailed today.
--Editors: Vernon Wessels, Emily Bowers
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