Ncondezi Energy Ltd has announced that Africa Finance Corp. (AFC) has joined the existing US$1.32 million loan facility (existing shareholder loan) announced in May 2016 and has committed an additional US$3 million to the shareholder loan facility in two tranches (new shareholder loan). The additional funding will be used to fund ongoing project development costs, including those that will not be covered by the joint development agreement (JDA) with Shanghai Electric Power Co., Ltd (SEP).
Highlights of this include:
- AFC committing up to US$3 million in addition to the Existing Shareholder Loan provided by other parties and announced in May 2016 in two tranches:
- Tranche A for a total of US$1 million on the same terms as the existing shareholder loan to be repayable on 10 May 2017.
- Tranche B is a conditional US$2 million loan with a 24 month term from first drawdown subject to certain conditions, including the completion of the JDA with SEP and Ncondezi providing an appropriate security package.
- Repayment terms of the existing shareholder loan amended to now be repayable on 10 May 2017.
- New shareholder loan provides conditional funding to reach financial close on the mine and power plant following the expected completion of the SEP JDA later this year.
- UAE holding company structure for the power plant completed.
Michael Haworth, Chairman of Ncondezi, commented: “We are pleased to announce that AFC has joined the Existing Shareholder Loan facility that was put in place in May 2016. As Ncondezi’s largest shareholder and one of Africa’s leading infrastructure development companies, AFC’s participation is further endorsement of the Ncondezi project’s progress. The AFC facility provides conditional financing for Ncondezi while the SEP JDA is completed and we work to reach Financial Close. The Company continues to make good progress in meeting the SEP Investment Conditions and the UAE holding company structure is now in place.”
Oliver Andrews, Chief Investment Officer of AFC, said: “AFC is committed to developing infrastructure that will foster economic growth and has high development impact. Lack of access to power is one of the greatest constraints to growth in Africa. Currently 620 million people, half of Africa’s population, do not have access to electricity. When completed and on-stream the Ncondezi power plant will provide up to 30 0MW of new generation capacity. With this new loan, the AFC is pleased to be able to support Ncondezi to reach financial close.”
Read the article online at: https://www.worldcoal.com/power/31082016/afc-joins-ncondezi-energy-existing-shareholder-loan-facility-2339/