#London #United Kingdom #Banco Santander #Globeleq #Temane Project

Globeleq's Triumph in English High Court

Globeleq, a prominent independent power producer in Africa, has expressed its satisfaction following the English High Court's ruling on October 13, 2026. The court ruled in favor of Globeleq's majority-owned Central Térmica de Temane, S.A. (CTT) in its legal battle against Banco Santander, S.A. The judgment comes as a pivotal moment for the Temane power project in Mozambique, where Santander was ordered to honor payment demands amounting to $90.8 million underscored by two autonomous on-demand bonds.

Summary of the Court's Decision

In a significant ruling, the English Commercial Court stated that Santander had no valid defense against CTT's claims for payment, thereby affirming the validity of the demands made by CTT, which totalled approximately $90,796,078.66. The court emphasized that these demands were legally sound, countering Santander’s reliance on a Spanish court's interim injunction obtained by contractor TSK, which the court deemed irrelevant to their contractual obligations with CTT.

Furthermore, the court firmly determined that the place of payment is Mozambique, where CTT's bank account to receive the funds is located. It was stressed that Santander had failed to act promptly regarding the Spanish injunction and had not proved that stepping into those proceedings would have altered its outcomes.

The court criticized Banco Santander for its prolonged non-compliance, highlighting that failing to honor a significant amount of on-demand bonds could severely tarnish its international reputation. The court rejected Santander's requests for a stay on enforcement and a deferred payment order, noting the excessive delays already experienced.

Importance of the Ruling

Jonathan Hoffmann, CEO of Globeleq, hailed the ruling as clear and crucial. He emphasized that the judgment concluded that CTT's demands were legitimate and that Santander’s contractual commitments need to be honored without any further delay. The outcome is particularly vital for the Temane project, which is a significant energy initiative in Mozambique. With the on-demand bonds designed to secure immediate financial support for the project, the court’s decision reinforces the agreed protections.

Hoffmann urged Banco Santander to acknowledge the court's decree, fulfilling its obligations without further procrastination. He underscored the necessity for timely payments to maintain the momentum of the project and meet obligations to stakeholders.

The Future of the Temane Project

Despite the legal challenges, the teams at CTT and Temane are resolutely dedicated to the operational delivery of the power project. Leveraging its extensive experience, Globeleq continues to focus on advancing the project while managing stakeholder responsibilities effectively. As a significant player in the power sector, Globeleq remains committed to innovative energy solutions that underpin Africa's energy transition.

About Globeleq

Globeleq stands as a leading developer, owner, and operator of electricity generation facilities in Africa. Established in 2002, the company has built a diversified asset portfolio that currently produces a significant 1,660 MW across 17 plants in seven countries, with additional projects in various stages of development. Backed by British International Investment and Norfund, Globeleq plays a pivotal role in the region's energy landscape.

The English High Court ruling marks a momentous event in the ongoing journey of the Temane project, aligning with Globeleq's mission to deliver sustainable energy solutions that positively impact communities and contribute to the region's economic growth.