(Ecofin Agency) - The Kenyan subsidiary of power producer Alten Energías Renovables secured a $35 million loan from British Emerging Africa Infrastructure Fund (EAIF). The facility, which comes to maturity in 15 years, will be used to finance the construction of a solar power plant in the Rift Valley region of Kenya. The transaction represents EAIF’s first investment on the continent in 2022.

A first tranche of the loan was unlocked in December 2021 and a second tranche is expected for this month. According to Sine Zulu, investment specialist at Ninety One, the manager of the EAIF, the project will establish EAIF as “a lender of choice for renewable energy companies investing in Africa.”

Once the project is completed, Alten Kenya plans to sell all of the output to the country's national energy company. The initiative will improve access to energy for thousands of people in Kenya.

In addition to EAIF, Standard Bank, through its Kenyan subsidiary, also plans to provide a $41 million loan to Alten Kenya for the $87 million solar power project.

Chamberline Moko