Gabon: IFC mulls investment in Meridiam-backed hydro project
The International Finance Corporation (IFC) is considering a total investment of about €59 million in the Kinguélé Aval hydroelectric power project in Gabon.
The project is developed by Asonha Energie, incorporated in Gabon. Its shareholders include global asset management company Meridiam SAS through its investment vehicles Meridiam Infrastructure Africa Fund (MIAF) and Meridiam Infrastructure Africa Parallel Fund (MIAPF), and the Gabon Power Company (GPC), with expected respective shareholdings of 45%, 15% and 40% in Asonha.
Meridiam is a global investor and asset manager in infrastructure projects with about $8 billion under management and 80 projects under development, under construction or in operation around the world.
GPC is an energy portfolio company created and 100% owned by the Gabonese Strategic Investment Fund (FGIS), Gabon’s sovereign wealth fund established in 2012 to assist Gabon in developing new industries that would help diversify the economy and generate revenues other than oil related.
The total project cost is estimated at c. €175 million financed with c. €131 million in debt and €44 million in equity.
The proposed IFC investment is composed of: 1) a senior loan of up to €33 million; 2) a senior concessional loan of up to $25 million from the IFC managed Canada-IFC Renewable Energy Program for Africa; and 3) risk management products with a loan equivalent exposure of c. $5.5 million.
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