Águas de Ponta Preta issues first green bonds to finance photovoltaic power plant project
Águas de Ponta Preta (APP), an ALER Member, issued the first green bond on the Cape Verde Stock Exchange (BVC) with 100% proceeds, totalling 500,000 escudos.
Green bonds are financial debt instruments issued by public or private entities with the aim of financing projects or activities that have environmental or sustainable benefits. In this case, the bond loan issued by APP is intended to finance the development project of a five-megawatt photovoltaic power plant in Salamansa, on the island of São Vicente.
According to the president of BVC, Miguel Monteiro, this project is in line with the Strategic Plan for Sustainable Development (PEDS) and the National Master Plan for the Electricity Sector for the period 2018/2040, in which the Government of Cape Verde sets a target of exceeding 50% of electricity production from renewable energy sources.
Miguel Monteiro considered that by issuing these green bonds, the company is directly contributing to the production of profitable energy, energy efficiency and the reduction of greenhouse gas emissions.
For the APP Board Chairman, Norberto Larriba Blay, it is a honour for the company, with more than 20 years in the Cape Verdean market, in the water and energy sector, to be issuing the first green bonds.
Norberto Larriba Blay believes that the project implemented with the bond loan will generate a competitive energy price that can reach four escudos per kilowatt hour (kw/h).
"That's 5.59 kw for the first 15 years and four escudos between 16 and 25 years. We have to remember that this is 82 per cent less than the current tariff that is regulated by the Multisectoral Regulatory Agency for the Economy (ARME)," he said.
The head of APP also spoke about the use of local renewable resources, with repercussions on the country's balance of payments, on ensuring energy independence, on the competitiveness of the country's industry, as well as on boosting job creation.
The results of the private offer were presented by the Secretary of State for Business Development, Adalgiza Vaz, who congratulated the company and the Stock Exchange on the success of this operation that aligns the country with the sustainable global development in exponential growth.
The minister recalled that the country has a National Master Plan for the Electricity Sector for the period 2018/2040 with goals that can only be realised with the participation of the private sector.
"We are aware that the success of this operation will result in increased capacity to build a portfolio of green projects that reduce investment risks, as well as help to strengthen the confidence of long-term investors in resilient projects, i.e. energy efficiency projects, renewable energy, smart agriculture, resilient infrastructure and other solutions," she said.