EGA's Guinea Alumina Corporation seals $750m loan for bauxite project
Emirates Global Aluminium (EGA) has announced that its wholly-owned subsidiary Guinea Alumina Corporation (GAC) has successfully closed a $750 million project financing deal for a greenfield bauxite mining project.
The loan has a tenor of 12 to 14 years.
The International Finance Corporation has committed total financing of $330 million including syndicated debt from commercial banks. The African Development Bank and Export Development Canada have committed $100 million and $150 million respectively.
The remaining funds have been extended by two European development finance institutions including PIDG Ltd’s company The Emerging Africa Infrastructure Fund Limited, and commercial banks covered from political risk.
The commercial banks participating include Societe Generale, ING Bank, Natixis, First Abu Dhabi Bank, Emirates NBD and Mashreq Bank.
Societe Generale acted as Financial Adviser to GAC and ING led due diligence on the project on behalf of the commercial banks.
The Multilateral Investment Guarantee Agency extended up to $129 million of political risk insurance cover to commercial banks participating in the loan.
Shearman & Sterling, S.D. Avocats, Akin & Gump Strauss Hauer & Feld LLP and Walkers acted as legal counsel for GAC. Allen & Overy, Bao & Fils and Maples & Calder acted as legal counsel for the lenders. DLA Piper and Sylla & Partners acted as legal counsel for the Government of Guinea.
It represents the first time multilateral institutions and international commercial banks have participated together in a project financing for a greenfield mining project in Guinea.
The financing supports the development of a bauxite mine as well as related transport infrastructure, including an upgrade to an existing multi-user rail system and the development of a port, in the first phase of GAC’s investment in the country.
A later phase of the project envisages the construction of an alumina refinery.
