Ressano Garcia Gas-Fired Plant

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The Ressano Garcia Gas-Fired Plant reached financial closure in June 2014. The sponsors of the project consist of the Gigajoule Group, Old Mutual, WBHO and a group of private Mozambique shareholders. More than 50% of the project’s equity is held by local shareholders but Gigajoule is the largest single shareholder in the project company. The financing will be used for the development of the 100MW gas-fired power plant in Mozambique.The project has a total cost of around $200m debt set to cover 80% of this expenditure and the rest to be met by equity investment. Standard Bank is the sole lender on the deal. Eaglestone acted as financial adviser to the sponsors on the transaction. Standard Bank is the sole lender on the deal, but is likely to have 100% of its commitment covered by a political risk guarantee from World Bank subsidiary Multilateral Investment Guarantee Agency (MIGA). The MIGA guarantee would still being negotiated. State utility EdM will be the sole offtaker from the plant under a 15-year power purchase agreement, while local company Matola Gas Company will supply the project with fuel under another 15-year contract. Several of the project’s sponsors, including Gigajoule, are shareholders in Matola, which aggregates gas from various gas extractors including Sasol. Gigawatt is one of several power projects being developed in Mozambique, including the gas-fired 140MW Ressano Garcia and 40MW Kuvaninga plants and the Moatize coal-fired plant. The project reached financial close on 24 June 2014 and construction on the plant has already commenced. Eaglestone acted as financial adviser to the sponsors on the transaction In July 2014, Standard Bank began the process of selling down its US$170m debt on the 100MW GigaWatt IPP. It was understood to be in discussions with the IFC, Proparco and another South African lender, and would make a decision on sizing. The transaction, with capex above US$200m, was financed by sole lender Standard funded with 75% senior debt and 5% subordinated debt, with a door-to-door tenor of 12 years. political risk guarantee from World Bank subsidiary Multilateral Investment Guarantee Agency (MIGA). The MIGA guarantee would still being negotiated. Gigajoule Pty Ltd 42 $16.80m USD Eagle Holdings 32 $12.80m USD Intelec Holdings 26 $10.40m USD