Company led by Andre de Ruyter’s right-hand man gets R7 billion boost

Mulilo, chaired by former Eskom COO Jan Oberholzer, has secured a corporate facility from Standard Bank with a total potential commitment of R7 billion. 

Oberholzer was Andre de Ruyter’s right-hand man during their time at Eskom. In this role, he advocated for the privatisation of some of the utility’s assets and a significant rollout of renewable energy. 

Both De Ruyter and Oberholzer have faced stiff criticism for their time at Eskom, with the utility undergoing a significant improvement in performance in the years since they left.

Oberholzer-chaired Mulilo recently secured a landmark corporate facility from Standard Bank to advance the rollout of its renewable projects across South Africa.

Standard Bank will act as the lender and agent for the Equity HoldCo Facility, with an initial R1.1 billion commitment to support Mulilo’s equity requirements. 

As the security pool expands, R5.9 billion can be allocated, raising the total potential commitment to R7 billion.

The companies said in a statement that, unlike traditional project-specific financing, this innovative facility has been designed to provide broad support for Mulilo’s strategic growth. 

It will empower the company to accelerate delivery of its ambitious pipeline, enabling equity participation, guarantees, and enhanced flexibility to pursue projects across multiple technologies and markets.

This pipeline includes Renewable Energy Independent Power Producer Procurement Programme projects, large-scale Battery Energy Storage Systems and private off-take agreements with aggregators and traders. 

Earlier this year, Mulilo was named the preferred bidder for four projects in the Free State province that will deliver 493 MW / 1,972 MWh of new battery storage capacity. 

These projects complement nine other large-scale renewable projects progressing towards financial closure.

“Securing the R7 billion facility is a pivotal milestone for Mulilo,” said CEO Jan Fourie.

“It affirms Standard Bank’s confidence in our strategy and growth trajectory while providing us with the flexibility to scale, diversify, and deliver on our pipeline of high-impact renewable energy projects.”

Mulilo and the renewable energy revolution

Mulilo has undergone a significant transformation since Copenhagen Infrastructure Partners (CIP) acquired a stake in the company two years ago. 

CIP manages 11 funds and has around €25 billion (R512 billion) in assets under management in renewable energy and associated infrastructure. This makes it the largest global investor in renewable energy. 

Over the past 18 months, the business has consistently won and advanced major projects, cementing its role as a key contributor to South Africa’s energy transition.

Oberholzer has been chair of the company throughout these 18 months, with the former Eskom COO appointed in September 2023. 

A push toward clean energy at Eskom is “the right thing to do, given where the world is currently”, Oberholzer said in a phone interview with Bloomberg after his appointment at Mulilo.

Oberholzer said the utility may have to change how it does business, given that Eskom’s grid will also have to expand dramatically to accommodate more generation capacity.

“Maybe it’s time to allow private participation in that environment because of the magnitude of the work that needs to happen,” he said.

Mulilo plans to add around 5,000 MW to the South African grid in the coming years, with the company being well-positioned to benefit from the opening of the sector to private competition. 

To put this into perspective, it is more power than the newly built Kusile Power Station produces when fully operational.

Oberholzer is expected to be instrumental in this expansion, both as chairman and by providing consulting services to the company. 

What excites Oberholzer is that Mulilo has another 130 to 150 projects in the pipeline. “There is a project funnel that receives attention, which adds up to 30,000 MW,” he said.

“I believe that Mulilo is very well-positioned to play a significant role in energy generation moving forward.”

At the time of his appointment, Oberholzer said partnering with Mulilo is a good match for his skill set and their operations.