ASX-listed Danakali on Thursday announced that the African Export Import Bank (Afreximbank) had granted credit approval to provide preferred power contractor Inglett & Stubbs International (ISI) with a $42-million guarantee that would facilitate senior debt funding for the Colluli sulphate of potash project’s power plant.
As previously announced, Afreximbank, in partnership with Africa Finance Corporation (AFC) had also obtained approval to provide the Colluli Mining Share Company (CMSC) with a $20-million senior debt facility to fund construction and project execution for Colluli.
Obtaining credit approval for the guarantee further demonstrates Afreximbank’s confidence in Colluli, Danakali said on Thursday.
The guarantee allows ISI’s project financing to advance towards completion.
ISI’s senior debt facility will be used to build a power plant at Colluli. The plant will be developed under a build, own, operate and transfer model, which diversifies project risk by using the experience of proven operators.
ISI’s power generation solution is designed to match the front-end engineering design (FEED) power requirements and has been integrated into the FEED results.
The guarantee is separate from CMSC’s project financing requirements and does not represent an increased debt obligation for CMSC.