South Africa
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Verdure Finance (RF) Limited
A proven route into South Africa's fast-growing C&I renewable energy sector.
21 Oct 2026
Financing South Africa's small-scale renewable energy transition
- Sector: Financial
- Region: South Africa
- Finance instrument: Loan (Senior Secured Term Debt)
- Ninety One’s total commitment: R 110,478,819.00
SDGs*
*The SDG and related logos are referenced for illustrative purposes only and their use does not imply any endorsement of our products or services by the United Nations.
~247
projects financed.
163k
tonnes CO2e
saved/year
153 MW
installed capacity
Overview
~247
projects financed.
163k
tonnes CO2e
saved/year
153 MW
installed capacity
Key impact stats
Overview
~247
projects financed.
163k
tonnes CO2e
saved/year
153 MW
installed capacity
Project background
Overview
Verdure is a South African non-bank financial institution that provides debt financing to small and medium-scale renewable energy projects. Established in 2017, Verdure has deployed over R1 billion across 247 projects, becoming a specialist lender in South Africa's Commercial and Industrial (C&I) renewable energy market.
The Verdure portfolio is technology-agnostic within the renewables sector. The majority of the portfolio (62.5%) is solar PV, alongside hydro (24.8%) and biogas (12.7%). Projects are funded on a portfolio basis with scalable instalment sale structures, allowing Verdure to efficiently aggregate smaller assets into bankable facilities.
Ninety One participated in a R229.5 million securitisation of seasoned Verdure loan assets. The transaction provided senior secured exposure to 172 operational solar PV projects with strong corporate offtakers, supported by a 12.5% first loss tranche provided by Verdure.
Contribution and impact
Overview
Verdure Portfolio overview
- 247 projects financed across 16 borrower groups
- Technology mix: Solar and batteries 62.5% | Hydro 24.8% | Biogas 12.7%
- 153MW total installed capacity
Infrastructure buildout
Every installation is designed, built and maintained by the developer who originated it including but not limited to Thebe Solar, Terra Firma, Decentral, Westbrooke, BrightBlack, under a long-term O&M contract.
- Produces at competitive rate below Eskom’s time-of-use tariff
- The offtaker's cheapest power source – incentivising them to keep the PPA alive
- 247 sites across multiple geographies; one underperforming installation is immaterial to the portfolio
- Tier 1 panels and inverters; independent technical assessment at commissioning and annually
ESG and impact
Verdure requires all borrowers to comply with IFC Performance Standards. The portfolio is SDG 13 (Climate Action) aligned and committed to transition and net-zero goals. Key ESG attributes:
- 163,222 tonnes of CO₂e avoided annually (as at 28 February 2025)
- Rooftop solar installations with no land use or water-intensive operations
- Quarterly E&S audits and borrower compliance reporting against ESIA standards–3,800 households powered annually
Investment
Overview
Verdure offers institutional investors access to South Africa's C&I renewable energy market through a structured, diversified vehicle:
- Diversified offtakers with strong credit quality including but not limited to: Momentum Metropolitan, Shell SA, Shoprite, Abland Properties
- 81% of SPV portfolio on take-or-pay or fixed-rental structures, providing predictable cashflows
- 12.5% first loss tranche from Verdure enhances structural protection for senior noteholders
Important Information
This communication is provided for general information only and should not be construed as advice.
All the information in this communication is believed to be reliable but may be inaccurate or incomplete. The views are those of the contributor at the time of publication and do not necessarily reflect those of Ninety One.
Any opinions stated are honestly held but are not guaranteed and should not be relied upon.
All rights reserved. Issued by Ninety One.
For further information on indices, fund ratings, yields, targeted or projected performance returns, back-tested results, model return results, hypothetical performance returns, the investment team, our investment process, and specific portfolio names, please click here.