Emerging Africa Infrastructure Fund (EAIF) and Dutch DFI, FMO are jointly lending $29.3 million of senior debt to the 13MW Bugoye hydro-electric power plant, situated in Western Uganda, which is owned by the Africa Renewable Energy Fund (AREF), Berkeley Energy‘s $200 million renewable energy fund which closed in late 2015.
The proceeds of the refinancing will be used to repay the balance of EAIF’s original loan to the project as well as construction loans made by AREF. In addition, some of the capital will be used to fund repair works for the power plant, which has been producing electricity for Uganda’s national grid since 2008.
“The Bugoye refinancing is one of the first refinancings for small hydro projects on the continent and is an important milestone for Uganda’s renewable energy sector,” Nicholas Tatrallyay, an Investment Manager at Berkeley Energy said. “The Bugoye refinancing will allow AREF to invest additional capital into Uganda and further expand its portfolio of hydro projects in the country.”
EAIF and FMO each provided 50% of the $29.3 million loan, with EAIF acting as the mandated lead arranger for the refinancing which was undertaken by the fund’s managers, Investec Asset Management.
Clifford Chance and Mukunbya Musoke Advocates acted as legal advisers to both lenders for the transaction, provided both lenders. Royal Haskoning DHV provided technical and E&S advice, Indecs Consulting acted as insurance adviser while BDO provided financial and auditing services.