Executive Summary

This is a 300 MWp solar and battery storage independent power project in Zambia's Central Province, built in four phases of 50MW, 50MW, 100MW and 100 MW. It is developed by Off-Grid Europe GmbH, a German engineering and construction contractor, with Lloyds Financials Limited as Zambian sponsor, through their joint venture Off-Grid Zambia. The site adjoins a 330 kV transmission corridor. A dedicated line-in line-out connection, built and owned by the project, gives direct access to the Southern African Power Pool without dependence on constrained utility substation capacity. The land is provided under long lease by a private Zambian landholder who also participates at the equity level. Phase 1 is 50 MWp with 30 MWh of storage, producing 92 GWh a year. All output is sold under a long-term power purchase agreement with a licensed private power trader serving domestic industry and cross-border mining demand. Seeking up to USD 61.5M for Phase 1, 50 MWp solar with 30 MWh storage: USD 46.1M senior debt, supported by political risk and credit insurance, and USD 15.4M sponsor equity. Part of a four-phase, 300 MW programme of around USD 308M to USD 352M. Off-Grid Zambia is the development vehicle and project company sponsor. It is the joint venture between Off-Grid Europe GmbH and Lloyds Financials Limited, formed to deliver the Zambian portfolio. OFF-GRID EUROPE (OGE) Founded in 2010 by Christiane Kragh and Mark Kragh, Off-Grid Europe GmbH (Germany) is an integrated energy company active in more than 12 countries and delivering in Africa since 2016. It covers the full chain in-house: research and development, design, manufacturing, engineering and construction, logistics, operations and maintenance, financing and training. Its field-proven products include the Ohms Box modular battery storage unit, the Much Cooler solar cold hall, solar home systems and the IoTEM energy monitoring platform. OGE delivers turnkey projects under FIDIC Silver Book terms with fixed price, date-certain completion, liquidated damages and performance bonding, and provides long-term operations and maintenance. LEADERSHIP Christiane Kragh — Chief Executive Officer Mark Kragh — Chief Technology Officer Damien Blanke — Chief Operations Officer Daniel Janouschek — Chief Financial Officer Kerii H. Tjitendero — Regional Commercial Director, Southern and Eastern Africa, leading the Zambian portfolio LLOYDS FINANCIALS LIMITED (LFL) Lloyds Financials Limited is a Zambian financial services company and the local sponsor. It is led by Professor Lloyd Chingambo, an established figure in Zambian energy and development finance space, supported by a team with direct experience of the Zambian regulatory, utility and institutional environment, including the Energy Regulation Board and the national transmission utility. The two companies are jointly developing a Zambian pipeline of more than 2,000 MW of utility-scale generation, alongside rural electrification, institutional solar and agricultural processing programmes. This is a greenfield project financing. The project company is newly formed, so the figures below are projected project economics rather than historic accounts. They are indicative and subject to final engineering, the executed power purchase agreement and lender due diligence. PHASE 1 — 50 MWp SOLAR WITH 30 MWh STORAGE Total project cost: USD 61.5M, including the 330 kV connection asset Annual generation: 92 GWh on a P50 basis Contracted revenue: long-term power purchase agreement covering 100% of output Annual operations and maintenance: USD 1.1M CAPITAL STRUCTURE Equity 25% / Senior debt: 75%, USD 46.1M, 15-year tenor. Security is political risk and credit insurance written by one of Africa's most established and widely accepted multilateral insurers (optional), alongside assignment of the power purchase agreement and site lease, a first charge over project assets, a share pledge and a six-month debt service reserve. Offtaker payment obligations are further supported by rolling letters of credit. COVERAGE AND RETURNS At a contracted tariff of 12c per kWh, Phase 1 generates annual revenue of USD 11.0M, a debt service coverage ratio of 1.85x and a cash return on equity of 29.8%. The structure remains bankable down to 8.8c, where coverage is 1.30x. Zambian domestic tariffs presently range from 8c to 12c per kWh. Cross-border export contracts with mining offtakers range from 15c to 28c. The project is positioned inside the achievable band with substantial headroom below the target tariff. PROGRAMME 300 MWp across four phases, total indicative cost USD 308M to USD 352M. Phase 1 constructs the grid connection used by every later phase, so subsequent phases carry materially lower unit connection cost and improved returns. Zambia's power sector is in structural deficit. Generation is roughly 85% hydroelectric and concentrated on the Kafue and Zambezi systems, leaving the country acutely exposed to drought. The 2024 and 2025 droughts drew Kariba to operational minimums and produced sustained national load management. Supply has since stabilized through new thermal and solar capacity, imports and expanded independent power participation, but peak demand on the unconstrained system is estimated at 2,400 MW and growing at 4% to 5% a year, driven by copper mining expansion, agro-processing, urban growth and data infrastructure. Independent analysis points to a requirement of at least 1,500 MW of non-hydro firm or semi-firm capacity by 2030 to rebuild reserve margins. Solar with battery storage answers this directly. It is drought-proof, can be built in 12 to 18 months against several years for hydro or thermal, and storage allows dispatch into the evening peak when the shortfall is most acute. Zambia's existing hydro fleet is well suited to acting as flexible balancing capacity alongside it. The market structure is unusually open. The single-buyer model has been replaced by an open-access regime under which licensed power traders wheel electricity across the national transmission network and negotiate market-driven tariffs with willing buyers, rather than selling into a regulated utility offtake. This is the feature that makes a trader-contracted independent power project financeable in Zambia in a way that is not yet possible in most neighbouring markets. The export opportunity is larger than the domestic one. Zambia sits on the Southern African Power Pool and borders the Democratic Republic of Congo, where copper and cobalt expansion, a major new smelter and the Lobito Corridor are creating demand that domestic generation cannot meet. Licensed Zambian traders hold cross-border contracts with mining offtakers at tariffs materially above domestic levels. A plant connected directly to the transmission corridor, with storage enabling dispatch outside solar hours, reaches both markets. Precedent exists. In January 2026 a 32 MW Zambian solar project reached financial close selling to a private licensed trader, with no sovereign guarantee and no state utility offtake, financed by a club of development finance institutions. This project applies the same architecture at utility scale, with credit insurance in place of a sovereign guarantee. Regulatory conditions are constructive. Import duties on solar equipment have been removed, net metering has been adopted, and the Energy Regulation Board licenses generation and trading under a published framework.