The Africa Finance Corporation has announced that financial close has been reached for the $350 million deal to finance an 80MW peat-to-power project in Rwanda’s Gisagara district. The new power plant is projected to increase the country’s installed generation capacity by 40%.
Acting as the Mandated Lead Arranger for the project’s debt, Africa Finance Corporation has arranged senior debt facilities totaling $245 million, contributing $75 million in loans itself, and providing an underwriting commitment of $35 million.
Finnfund, the Finnish Government’s development finance institution is acting as the lead arranger for the mezzanine component of the project’s debt, which total $35 million. The other lenders involved in the group are Eastern and Southern African Trade and Development Bank, the African Export-Import Bank, the Export-Import Bank of India and the Rwanda Development Bank.
The project, which will take advantage of the country’s significant peat reserves, has two sponsors–Haken Madencilik, a Turkish energy company and Quantum Energy, a power and energy infrastructure investment platform—and will be developed by Themis Infra.