Landmark Cenpower IPP reaches financial close

Published: 05/01/15

Trinity is pleased to confirm that the Kpone Independent Power Plant (the “Cenpower project”) in the Tema industrial zone near Accra, Ghana reached financial close on 23rd December 2014. Trinity have advised the project company on the Cenpower project since 2010.

When it comes on stream in 2017, the Cenpower project will be the largest private IPP in Ghana, accounting for approximately 10% of Ghana’s total installed capacity and approximately 20% of its available thermal generation capacity. As a combined cycle gas turbine plant, it will be amongst Ghana’s most fuel-efficient thermal power stations. Once in production, the Cenpower power plant will provide critical base-load to help in meeting Ghana’s growing electricity demand.

The project financing comprises a US$650 million debt tranche and a US$ 250 million equity tranche. The debt is being funded under export credit cover by a consortium of South African commercial banks and international Development Finance Institutions (DFIs). Rand Merchant Bank of South Africa acted as the Global Lead Bank and Mandated Lead Arranger for the commercial banking tranche. Other South African banks involved in the transaction as Mandated Lead Arrangers were Nedbank and Standard Bank. Nederlandse Financierings-Maatschappij voor Ontwikkelings Landen N.V. (FMO) the Dutch development bank, acted as the Mandated Arranger for the DFI tranche comprising FMO, DEG, OFID, EAIF from Europe and DBSA and IDC from S. Africa.

Led by Africa Finance Corporation, three additional investors joined the the equity consortium, whilst InfraCo, the principal project co-developer since inception, exited. The new investors are Sumitomo Corporation of Japan, African Infrastructure Investment Fund II and its co-investors (via an investment vehicle called Mercury Power) and FMO. Post-financial close, the equity holders in the project company now are AFC Equity Investments Limited (a wholly-owned subsidiary of the Africa Finance Corporation, Cenpower Holdings Limited, a consortium of Ghanaian investors, Sumitomo Corporation, Mercury Power and FMO.

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