We have advised Camco REPP 2 (“REPP 2”) on the fund’s inaugural transaction: a USD multi-tranche loan facility to Kwama Energy Limited (“Kwama”), a Zambian independent power producer developing wind and solar PV projects across Zambia. The financing supports Kwama’s multi-million dollar equity investment in Ilute Solar Limited (“Ilute”), an independent power producer which is developing a 25MW (32MWp) solar photovoltaic project near Sesheke in Zambia’s Western Province.
Having achieved first close in December 2024 with USD 185 million in total commitments, this transaction marks REPP 2’s first investment to reach financial close. REPP 2 is a pioneering private debt fund managed by Camco, established to finance small and medium-scale renewable energy projects across Sub-Saharan Africa. The fund uses a blended finance structure, leveraging public and private capital to support distributed and small-scale renewable energy projects, with the objective of accelerating the energy transition while delivering climate and economic development impact, and supporting the decarbonisation of the African energy system.
Completion of Kwama’s equity injection, alongside investment from co-shareholder Serengeti Energy, unlocks additional project-level financing of approximately USD 26.5 million. The project-level financing is provided by a consortium of senior lenders, including FMO (through its Access to Energy Fund), the Sustainable Energy Fund for Africa (managed by the African Development Bank), ElectriFI (managed by EDFI Management Company), and Triodos Investment Management.
The Ilute transaction is a landmark transaction for renewable energy finance in Sub-Saharan Africa, as Africa’s first non-recourse, project-financed generation project operating under a market-based power purchase agreement. The Ilute solar project is also one of the first greenfield renewable energy projects in Zambia in recent years to secure debt financing pre-construction. Originally developed by Buffalo Energy Limited and Western Renewable Power Limited, the project will strengthen Zambia’s grid resilience, support regional power market integration, and deliver long-term environmental and social benefits.
The Burges Salmon team advising on the structuring and execution of the financing was led by Stuart McMillan, Luke Addison, and Alice Burns. The firm has extensive experience advising on renewable energy project financings across Africa, including in Zambia.
