INVESTOR BRIEF SECURED MEDIUM TERM LOAN FOR GHANAIAN POWER COMPANY
Sector Power
Geography Ghana
Funding $75 million in medium term debt payable over 20 quarters (5 years). Afreximbank has already committed $75 million.
Use of Funds To partly refinance the power generator’s short term obligations.
Interest Rate 9% + 3 Month LIBOR.
Security The facility is backed by receivables from a regional power distribution company and two subsidiaries of a major international mining company. The facility is also secured by an SBLC from Ecobank. In the unlikely event that receivables do not cover repayment or the borrower is unable to supply power, the SBLC will cover any shortfall in the payment of the loan.
DSCR
Company Background The borrower is a major Ghanaian power generation company, solely owned by the Government of Ghana. The borrower forms part of the recently restructured electricity generation, transmission and distribution chain in Ghana. The borrower combines hydro and thermal plants to generate electricity for supply to the local and export markets. The local market consists of the Electricity Company of Ghana (61% of market consumption), the mines, and industrial establishments (who purchase electricity directly) with the export market comprising the Republics of Togo and Benin and Burkina Faso.
The total installed capacity of borrower’s generation facilities is 2,186MW made up of 1,180MW hydro and 1,006MW thermal.
More Information Additional information made available upon request.
Contact For more information, please contact: Mansur Nuruddin at mansur@mncapital-africa.com