MAURITIUS: $45 million in green bonds to finance 13 solar power plants

Envolt, a subsidiary of the Mauritian conglomerate ENL, is launching a $45 million green bond programme in Mauritius. The aim is to finance the construction of 13 photovoltaic solar power plants in this island country off the coast of East Africa.

The green bond market is gathering pace in Mauritius. This is thanks to Envolt, a subsidiary of the Mauritian conglomerate ENL, which is launching a 2 billion Mauritian rupee ($45 million) programme. Envolt’s first green bond issue is for 510 million Mauritian rupees, or $11.5 million.

The programme is expected to run until 2028. The proceeds of the green bonds will be used to finance the construction and operation of 13 solar photovoltaic parks with a combined capacity of 14.4 MWp. The plants in Mauritius will be completed over a period of 10 to 17 months. According to the UK-based finance company FSD Africa, which is backing the deal, the issue represents an important milestone for the Mauritian renewable energy sector, as well as for the country’s capital markets, as it is the first green bond issue to finance clean energy in Mauritius.

In addition, “these green bonds will be the first of their kind issued in Mauritius under the 2021 Green Bond Principles (as devised by the International Capital Market Association [ICMA]), which are aligned with global standards and combat greenwashing by requiring rigorous assessment of projects and their respective environmental or emissions claims,” says FSD Africa.

The Envolt transaction is being advised by MCB Capital Markets, an investment bank based in Port Louis, Mauritius. It is part of the Southern African Development Community (SADC) Green Bond Programme supported by FSD, which runs until March 2024. Mauritius’ participation in this programme will accelerate the maturity and expansion of the Mauritian capital markets and advance the country’s efforts to attract private investment.