Chariot Limited (LSE:CHAR) has secured a substantial financing package alongside a strategic equity partner to support its investment in two South African wind power projects, Zen and Bergriver. The developments are being led by Acciona Energia, with construction activities expected to commence in the near term.
As part of the transaction, Chariot has formed a new subsidiary, Chariot Generation and Trading Pty Limited, which will hold a 24% equity interest in the wind projects. The structure also provides Chariot with a 34% economic interest in Etana, a South African electricity trading platform. The funding package comprises a mix of project finance debt, an equity contribution from the Mahlako Energy Fund, and mezzanine financing, with the structure designed to avoid dilution at the Chariot parent company level.
Once the wind farms are commissioned, which is targeted for mid-2027, Chariot is expected to benefit from recurring revenues generated through both electricity production and power trading. Management sees the transaction as a key step in scaling its renewable power platform and strengthening its presence in South Africa’s energy market.
While the group continues to face financial headwinds and near-term pressure reflected in technical indicators, recent corporate activity highlights a strategic pivot towards renewable energy. Partnerships and asset development in this area are viewed as potential drivers of longer-term value, despite the company’s current loss-making position.
More about Chariot Oil & Gas
Chariot is an Africa-focused energy group operating across two core areas: upstream oil and gas and renewable power. Its renewable energy strategy centres on generating and trading clean electricity in South Africa, alongside power-to-mining initiatives across Africa. The group is also progressing Project Nour, a green hydrogen development in Mauritania.
Leave a Reply