Mandated lead arrangers Investec Bank Ltd (“Investec”) and Intesa Sanpaolo S.p.A (“Intesa”), in partnership with export credit agency UK Export Finance and African Trade Insurance Agency (“ATI”), have signed a loan to finance the upgrade and rehabilitation of a 109km stretch of the Bolgatanga-Bawku-Pulmakom Road in the Upper East Region of the Republic of Ghana.
Investec is global co-ordinator and agent for both loans.
The financing consists of two loans in favour of Ghana’s Ministry of Finance. The first, backed by UK Export Finance, the UK’s export credit agency, is EUR35 million, split into a EUR17.5 million direct loan and a EUR17.5 million buyer credit guarantee tranche. The second is an untied commercial loan of EUR47 million to cover the balance of the financing required. It is backed by ATI, Africa’s Multilateral Trade & Investment Insurer.
QG Construction UK Ltd is carrying out the engineering, procurement and construction contract.
Critically the large untied commercial loan tranche supported by ATI allows significant local sourcing of Ghanaian equipment and services and also local job creation in the delivery of the project. The UK Export Finance supported tranche will support UK goods and services exports to the project.
Hon Charles Adu Boahen, Minister of State at the Ministry of Finance said: “We are delighted to again work with Investec as co-ordinating bank, in the delivery of this landmark export credit financing. The Bolgatanga road will provide access to essential services for local communities, will stimulate trade and economic and social development and will further integrate the Upper East and the Northern regions of Ghana, as well as improve access to neighbouring countries.”
The loan is expected to be classified as a Social Loan under LMA Social Loan principles as it will dramatically improve access to essential services for underserved populations.
Investec partners with private, institutional, and corporate clients, offering international banking, investment, and wealth management services in two principal markets, South Africa and the UK, as well as certain other countries. The group was established in 1974 and currently has approximately 8,200+ employees. Investec has a dual listed company structure with listings on the London and Johannesburg Stock Exchanges. Investec’s current market capitalisation is approximately £3 billion.
About UK Export Finance
UK Export Finance is the UK’s export credit agency and a government department, working alongside the Department for International Trade as an integral part of its strategy and operations.
Established in 1919, it exists to ensure that no viable UK export should fail for a lack of finance from the private market. It provides finance and insurance to help exporters win, fulfil and get paid for export contracts.
UK Export Finance can help foreign countries with finance, loans and insurance to make their projects happen, if they commit to sourcing goods and services from the UK. The UK government’s backing for this project will therefore also open new doors for world-class British suppliers to trade in Ghana.