Swedish Stirling AB (“Swedish Stirling”) and the development bank The Industrial Development Corporation of Africa (“IDC”) has sign a letter of intent about forming a jointly owned financing/leasing company in South Africa. The new company will initially be able to finance deals in Africa for up to 100 PWR BLOK units.
The Swedish clean tech company Swedish Stirling today signed a letter of intent with South African development bank, IDC, to jointly establish a financing/leasing company in South Africa. The new company – which goes by the name “Southern Shield” – will initially be able to finance installations of up to 100 PWR BLOK units.
Swedish Stirling will initially own 51 percent of Southern Shield, but its share will be systematically diluted to no less than 25% + 1 share. Southern Shield intends initially to be financed with 50 per cent leverage, a figure which over time is expected to increase to 70 per cent. Under this arrangement, Swedish Stirling’s financial commitments in future deals – out of the 100 PWR BLOK that Southern Shield will be able to finance initially – can amount to a maximum of EUR 6 million, which the company intends to finance with green loans. The formation of the Southern Shield is subject to approval by IDC Credit Committee and that the parties enter into necessary agreements.