GLOBELEQ WELCOMES ENGLISH HIGH COURT RULING ORDERING BANCO SANTANDER TO HONOUR US$90.8 MILLION TEMANE DEMAND BONDS

Globeleq, one of Africa's leading independent power producers and Globeleq, the majority shareholder in Central Térmica de Temane, S.A. (CTT) welcomes the judgment of the English High Court in CTT's proceedings against Banco Santander, S.A. (Santander) handed down on 13 October 2026.In its ruling, the Commercial Court held that Santander has no defence to CTT's claims for payment under two autonomous on-demand bonds issued in support of the construction of the 450 MW Temane power project in Mozambique. The Court confirmed that CTT made valid demands under the bonds for a total principal amount of US$90,796,078.66.The Court rejected Santander's reliance on an interim injunction obtained by TSK from a Spanish court. It held that Santander's contractual obligation is to make payment into CTT's designated account in Mozambique, and that Mozambique is therefore the place of performance. The Spanish injunction does not provide Santander with a defence to that payment obligation.The Court further found that Santander made no effort to have the Spanish injunction discharged and had not established that intervention by it in the Spanish proceedings would have made no difference. The judgment records that Santander's continued failure to honour approximately US$90 million of on-demand bonds could have a seriously adverse effect on its international reputation.Santander's applications for a stay of enforcement and for a deferred payment order were refused. The Court found that there had already been "very substantial delay" in payment and that further delay and uncertainty should not be facilitated, given the crucial commercial function of demand bonds as being "akin to cash" and the "lifeblood of commerce".Globeleq's CEO Jonathan Hoffmann said:"This is a clear and important judgment. The Court has confirmed that CTT's demands were valid, that Santander has no defence to CTT's payment claims, and that there should be no further stay or deferral. This matters for the Temane project, which is nationally significant energy project for Mozambique. The purpose of these on-demand bonds was to provide immediate and reliable financial protection for the project. That protection has now been upheld by the English Court.Globeleq as the majority shareholder of the Temane project, calls on Santander to respect the Court's judgment, honour its contractual commitments and make payment without further delay. After more than 18 months of non-payment, further proceedings would only prolong the uncertainty that the Court has expressly declined to facilitate."The CTT and Temane project teams, remains focused on the delivery and operation of the Temane project and on meeting its commitments to the project's stakeholders.

GLOBELEQ WELCOMES ENGLISH HIGH COURT RULING ORDERING BANCO SANTANDER TO HONOUR US$90.8 MILLION TEMANE DEMAND BONDS

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