Africa Finance Corporation (AFC)'s 80 MW peat-to-power project in Rwanda just received an award as the 2017 Africa Power Deal of the Year -- from Infrastructure Journal (IJ).
Executives at Africa Finance Corporation receive award for 2017 Africa Power Deal of the Year from Infrastructure Journal. Photo: Africa Finance Corporation
The project is so significant it now looks to improve access to electricity for over 75% of he country's population which is currently 'off the grid'.
AFC was the Mandated Lead Arranger for the project debt, and successfully arranged total senior debt facilities of US$245 million, contributing US$ 75 million of its funding to the facilities. Despite its status as one of Africa’s fastest-growing economies, only 25% of Rwanda’s population currently has access to reliable electricity.
The US$ 350 million power plant will increase Rwanda’s installed capacity by 40%. Scheduled for completion within three years, the Project is located in the Gisagara District, one of the most remote areas of Rwanda. The Project is sponsored by Hakan Madencilik A.S, a Turkish energy company, and Quantum Power, a power and energy infrastructure investment platform.
Apart from AFC, other members of the lending consortium included Finnfund (which served as the lead arranger for total mezzanine debt facilities of US$35 million for the Project), Trade and Development Bank (TDB), African Export-Import Bank, and the Development Bank of Rwanda.
Andrew Alli, CEO of AFC, commented “At AFC we are delighted to receive this award and to be recognised as a global force helping to address Africa’s severe energy problems. This Project will be hugely beneficial to Rwandan communities, not just in terms of the financial savings made from reducing the imported energy supplies, but because of the wider socio-economic benefits. At AFC we are 100% committed to investing in projects that will address Africa’s infrastructure development needs that will provide substantial, measurable benefit in the long term. I would like to thank the organisers of this event for their work on this event, and for recognising AFC as a global leader in this space.”
About AFC - www.africafc.org
AFC, an investment grade multilateral finance institution, was established in 2007 with an equity capital base of US$1 billion, to be the catalyst for private sector-led infrastructure investment across Africa. With a current balance sheet size of approximately US$3.5 billion, AFC is the second highest investment grade rated multilateral financial institution in Africa with an A3/P2 (Stable outlook) rating from Moody’s Investors Service. AFC successfully raised US$750 million in 2015 and US$500 million in 2017; out of its Board-approved US$3 Billion Global Medium Term Note (MTN) Programme. Both Eurobond issues were oversubscribed and attracted investors from Asia, Europe and the USA. AFC’s investment approach combines specialist industry expertise with a focus on financial and technical advisory, project structuring, project development and risk capital to address Africa’s infrastructure development needs and drive sustainable economic growth. AFC invests in high quality infrastructure assets that provide essential services in the core infrastructure sectors of power, natural resources, heavy industry, transport, and telecommunications. To date, the Corporation has invested approximately US$4 billion in projects within 28 countries across North, East, West and Southern Africa.
About IJ Global Award
Africa Energy & Infrastructure Investment Forum (‘AEIIF’) is part of IJ Global’s Energy & Infrastructure Forums series focusing on opportunities in Africa, exploring successful approaches for mitigating risks and unlocking the huge potential of energy and infrastructure investments in Sub-Saharan Africa. The award itself recognises an outstanding energy or water deal that has reached financial closure between 1 January 2017 and 31 December 2017, judged by a panel of leading industry experts.