MCB Capital Markets, the investment division of MCB Group, has advised on EnVolt’s debut issuance of MUR 510 million (USD 11 million) in Green Project Bonds under EnVolt’s MUR 2 billion (USD 45 million) Multicurrency Green Bond Program. The funds will support the construction of 13 solar farms with a total capacity of 14 MW on the island.
EnVolt, a subsidiary specializing in renewable energy development under the ENL Group, a diversified investment holding company, is actively contributing to the promotion of renewable energy in Mauritius. MCB Capital Markets has played a pivotal role as the Transaction Advisor for EnVolt’s maiden offering of MUR 510 million (USD 11 million) in Green Project Bonds, issued as part of EnVolt’s larger MUR 2 billion (USD 45 million) Multicurrency Green Bond Program. The funds generated from this issuance will be dedicated to financing the construction of 13 solar farms across the island, with a combined capacity of 14 MW, estimated to cost MUR 680 million (USD 15 million).
This issuance is a significant milestone for the Mauritian debt capital markets as it marks the first time that a renewable energy project is financed through a bond issue. This transaction underscores the depth of expertise of MCB Capital Markets in structuring such financing and resonates with Lokal is Beautiful, MCB Group’s initiative to promote everything local. Rony Lam, CEO, MCB Capital Markets: “We are proud to have advised EnVolt on this landmark transaction, which sets international standards for the issuance of Green Bonds in Mauritius. This transaction reflects the rapid development of the local currency bond market over the past eight years. The deployment of local resources to finance the domestic economy and infrastructure projects is vital to the development of the African continent.”
Alignment with Mauritius’ NDC
The project aligns seamlessly with and contributes to the Mauritian government’s ambition to achieve 60% renewable energy production by 2030. As the foremost banking group in Mauritius, MCB fully endorses this initiative, which endeavours to accelerate the country’s transition towards renewable energy. MCB is committed to supporting the transition to a circular, greener economy and fostering local production and is dedicated to facilitating the country’s evolution into a greener economy in line with Mauritius’ Nationally Determined Contribution (NDC).
EnVolt’s Green Bond framework has been independently assessed by Morningstar Sustainalytics, a leading ESG research, ratings and data firm that provides support to responsible investment strategies. The UK-based firm provided EnVolt with an independent verification assessment of its framework to validate its alignment with the Green Bond Principles (GBP) from the International Capital Market Association (ICMA) and the Green Bond Guidelines issued by the Mauritius Financial Services Commission (FSC).
The bond program also received technical support from FSD Africa, the UK’s financial sector development organization as part of its broader Green Bonds program. The bond was rated by CARE Ratings Africa, raising fixed-rate financing with a tenor of up to 17 years. Notably, it garnered substantial interest from a diverse investor base, including banks, asset managers, and pension funds. MCB Ltd was the largest investor in the bonds.