Danakali Receives Credit Approval for Power Plant Construction

 

 

Danakali Receives Credit Approval for Power Plant Construction

 

This credit approval follows the recent US$200 million senior debt facility to fund construction and project execution.

 

August 9, 2019:  Danakali Ltd – Danakali receives credit approval for power plant construction

 

This is another important step in advancing project financing towards completion..

 

Danakali Ltd (ASX:DNK) has been granted formal credit approval by Afreximbank to provide a US$42 million guarantee supporting the power plant for the Colluli Potash Project in Eritrea.

 




 

The preferred power contractor, Inglett & Stubbs International (ISI), will use the guarantee to facilitate senior debt funding that will be used to cosntruct the project’s power plant.

 

 

ISI will utilise a build own operate transfer (BOOT) model, which diversifies project risk by utilising the experience of proven operators.

 

 

Notably, the US$42 million guarantee is separate from the project financing requirements and does not represent an increased debt obligation.

 

Earlier this week, Danakali received credit approval for a US$200 million senior debt facility from Africa Finance Corporation (AFC) and Afreximbank.

 

 

Credit approval is a critical project financing and execution milestone and represents the conclusion of an extensive due diligence process.

 

 

Danakali continues to assess a range of options for funding the balance of the capital required to bring Colluli into production.

 

 

Today’s US$42 million guarantee from Afreximbank is further comfirmation of their confidence in the project and Eritrea.

 

 

Source: https://www.proactiveinvestors.com.au/companies/news/900328/danakali-receives-credit-approval-for-power-plant-construction-900328.html

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