Danakali executes $200m financing for potash project in Eritrea
Colluli Mining Share Company - a JV between Danakali and Eritrean National Mining Company - has executed definitive documents for a $200 million seven-year senior debt facility to finance development and construction of the Colluli Sulphate of Potash Project in Eritrea. The documents were executed by mandated lead arrangers African Export-Import Bank and the Africa Finance Corporation, which will both contribute $100 million. The margin on the loan is 8.5% over Libor.
The facility represents the majority of funding required for the development and construction of the project, located in the Danakil Depression region of Eritrea. The Export Credit Insurance Corporation of South Africa SOC will provide credit support for AFC’s portion of the Facility.
