Ecobank to arrange up to $250 million for Ghana’s Awaso mine
By the AFREEQUE newsroom, based on Ghanaian Times
Ghana Bauxite Company has tasked Ecobank Ghana with arranging financing of up to $250 million to develop its Awaso bauxite mine. The package includes a term loan and a revolving credit facility, but the amount ultimately raised will depend on financial syndication, according to the Ghanaian Times.
Ghana Bauxite Company Limited (GBC), the operator of the Awaso bauxite mine, has appointed Ecobank Ghana PLC as exclusive mandated arranger for financing of up to $250 million to develop its operations. The agreement was concluded in Accra on 28 October, according to the Ghanaian Times.
The financing is to cover the purchase of mining equipment, improvements to ore transport and handling systems, as well as the infrastructure needed to increase production. It is also to provide GBC with working capital for its day-to-day activities.
The arrangement comprises a term loan and a revolving credit facility. Ecobank Ghana is to structure the transaction, approach interested financial institutions and coordinate the syndication. The $250 million is a financing ceiling, not an amount already disbursed, with the funds ultimately mobilised and the final terms depending on the forthcoming process.
The project comes as Rusal and the Ghanaian organisation target 5 million tonnes of bauxite a year. The modernisation of Awaso is to strengthen production capacity and the infrastructure needed to transport the ore, according to the Ghanaian Times.
