Mulilo secures $400 million funding from Standard Bank

From the newsletter

Independent power producer Mulilo has obtained $400 million in loan funding from Standard Bank, Africa’s largest lender by assets. Unlike previous project-based financing, this facility is structured at the corporate level, giving Mulilo the flexibility to expand a portfolio that spans utility-scale renewables, battery storage and private-sector PPAs.

• This funding marks a new phase for renewable energy financing in South Africa, raising the bar as the sector’s growing attractiveness continues to draw capital. Standard Bank, in particular, has been a leading player in driving this momentum.

• As South Africa rolls out policy changes in the power sector, new opportunities are emerging across the entire supply chain. The transmission network alone is expected to attract more than $25 billion in investment over the next decade.

More details

• Standard Bank will act as the sole lender and agent on the transaction, reinforcing its expanding role in South Africa’s renewable energy sector. Unlike traditional project-based financing, this new facility is structured at the corporate level to support Mulilo’s broader strategic ambitions, including equity participation and guarantees. The deal follows the bank’s role as lead arranger for CrossBoundary Energy’s $300 million capital raise, of which at least half has already been secured.

• Mulilo has been particularly active in South Africa’s energy transition. The company won four out of five projects in the Renewable Energy Independent Power Producer Procurement Programme (REIPPPP) bid window 7, securing 493 MW / 1,972 MWh of battery storage. These wins build on nine other large-scale renewable projects now moving toward financial close, further establishing Mulilo as a key player in the market.

• A decade ago, REIPPPP bid windows were the main route for renewable energy projects to reach the market. Today, private procurement and corporate power purchase agreements (PPAs) are rapidly gaining ground. This shift is being driven by years of load-shedding, rising tariffs, and regulatory reforms that removed licensing requirements for embedded generation. As a result, large energy users, from miners to manufacturers and telecoms, are increasingly sourcing reliable, cost-effective supply directly from independent power producers. 

• Policy reforms have unlocked even more opportunities. Alongside the liberalisation of embedded generation, the government has launched dedicated battery storage rounds and piloted virtual wheeling arrangements that allow corporates to procure renewable energy across the Eskom grid. Vodacom, working with SOLA Group, became the first company to operationalise such an agreement. 

• Banks are playing a central role in financing the transition. Standard Bank’s new facility confirms its leadership position, but competition among lenders is intensifying. Absa has financed more than 3 GW of projects through REIPPPP and is now active in corporate PPAs. Nedbank recently closed funding for Enel’s 330 MW Impofu wind cluster, while RMB and Investec are scaling their renewable portfolios through partnerships with multilaterals and growing pipelines of private-sector projects.

• On the developer side, the sector is highly competitive, with well-established foreign players such as Norway-based Scatec, Saudi Arabia’s ACWA Power, Germany-backed Juwi, and France’s EDF. These companies are undertaking large-scale projects at both the utility and private-led PPAs. For local players like Mulilo, long-term success depends on securing deep financial backing at competitive lending rates.

Our take

• Mulilo’s fresh financing narrows the gap with big multinationals. But sustaining competitiveness will require continuous access to affordable capital and innovative deal structures.

• Standard Bank has raised the bar for other lenders by not tying the funds to specific projects. Expect Absa, Nedbank, RMB, and Investec to replicate similar structures, making financing more flexible and competitive for IPPs in South Africa.

• Mulilo now has the flexibility to aggressively target miners, manufacturers, and telecoms with long-term PPAs, a segment expected to grow faster than traditional REIPPPP auctions.