GHANA — Genser Energy Ghana Limited (‘GEGL’) has announced that it has successfully achieved financial close for a US$366 million funding package including a new syndicated senior loan facility of USD230m, a mezzanine loan and preference shares.
GEGL provides distributed power generation solutions in Ghana to multinational industrial and mining companies including Gold Fields Ghana, Kinross Gold Corporation and more recently Perseus Mining.
With the closing of this financing, GEGL revealed that it intends to build over 170km of natural gas pipelines connecting its existing plants with the Ghana National Gas Corporation’s facilities.
It also plans to increase the total capacity of its existing plants from 100MW to 190MW and invest in new 161kV transmission lines.
“I am delighted that we have closed this funding which is a transformational transaction for GEGL as it undertakes the expansion of its Ghana operations,” stated Baafour Asiamah-Adjei, GEGL’s President and CEO.
The senior loan facility was financed by a consortium of South African banks comprising of Standard Bank, Nedbank and the Development Bank of Southern Africa (DBSA), alongside the Barak Fund.
Barak Fund is an existing lender to GEGL and as part of the structure the fund also funded a mezzanine tranche.
In addition, Genser Energy Holdings Limited, the Mauritius registered holding company closed a preference share investment from Africa 50.
DBSA which is one of the financiers is a government-owned development finance institution, delivering developmental infrastructure in South Africa and the rest of the African continent.
The DBSA operates across the entire infrastructure value chain which includes identifying, preparing and co-financing the development of infrastructure related initiatives in the Energy, Transport, Water and ICT sectors.
Nedbank on the other hand, is the oldest and one of the four largest banks in South Africa, offering the full spectrum of wholesale and retail banking.
Nedbank recognizes the importance of sustainable power across the continent and the role of the private sector through independent power producers (IPPs) and have been funding power projects as a key participant in landmark transactions.
GEGL was advised in this transaction by Northcott Capital Limited an independent financial advisory company providing bespoke, creative and integrated solutions to the natural resources & energy sectors.