African Infrastructure Investment Managers is taking a 44% equity stake on behalf of its third fund in Albatross Energy Mali as part of a mixed debt and equity financing package totaling €125.5 million.
Albatross Energy Mali is an independent power producer which will build, own, operate and eventually transfer a 90MW thermal power station in Kayes, Western Mali. The company has already struck a 20-year power purchase agreement with the country’s national utility, Energie du Mali, and, once operational, the new power station will increase the country’s total generating capacity by almost 25%.
The financing package is structured with 70% as senior debt and the balance as equity. The size of AIIM’s stake means that the infrastructure investment specialist is now Albatross Energy’s largest shareholder. The deal’s other equity investors include Redox Power Solutions, Burmeister & Wain Scandinavian Contractor, (who will construct and operate the project), and Denmark’s Investment Fund for Developing Countries.
The institutions providing loans to the project include the West African Development Bank, the Islamic Development Bank, the Islamic Corporation for the Development of the Private Sector, the OPEC Fund for International Development, the Emerging Africa Infrastructure Find and GuarantCo.
The deal is the third for AIIM’s third fund which has also backed AIIM Hydroneo, a hydropower joint venture between AIIM and French company Hydroneo Afrique, and DSM Corridor Group Tanzania, a specialist dry bulk terminal operator in Dar es Salaam. Details of how much capital the fund is deploying in Albatross Energy Mali were not disclosed.
For the financing, law firms Herbert Smith Freehills acted for the new shareholders while Hogan Lovells acted for the lender group and Linklaters served as project counsel,