Deutsche Bank, Investec Arrange EUR 600 Mln Financing To Construct Railway Line In Ghana

Deutsche Bank and Investec have signed an agreement with the Republic of Ghana to finance the construction of a 100km stretch of Ghana's Western Railway Line, running from Takoradi Port to Huni Valley.

The 600 million euros financing consists of two loans in favour of Ghana's Ministry of Finance. Deutsche Bank acted as mandated lead arranger for both loans.

The first, backed by Swedish Export Credit Agency and fully arranged by Deutsche Bank, is a 523 million euros loan covering the bulk of the cost.

The second is a 75 million euro commercial loan arranged and structured by Investec to cover the down payment on the Swedish Export Credit Agency -backed financing. It is backed by Export Credit Insurance Corporation of South Africa and funded by a syndicate of Investec Bank Ltd, Rand Merchant Bank, a division of FirstRand Bank Limited, Nedbank Limited and Sanlam life Insurance Limited.

Engineering, Procurement and Construction (EPC) contract of the project will be carried out by Amandi Investment Ltd with Bluebird Finance & Projects Ltd acting as lead financial advisor for the EPC.

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