ASX/LSE-listed Danakali has announced that Afreximbank has granted credit approval for preferred power contractor, Inglett & Stubbs International, with a US$42 million guarantee.
This facilitates senior debt funding for the Colluli Sulphate of Potash Project’s power plant.
African Export-Import Bank (Afreximbank), in partnership with Africa Finance Corporation, has also obtained approval to provide the Colluli Mining Share Company with a US$20 million senior debt facility to fund construction and project execution for the Project.
Read more about the Colluli Potash project
Obtaining credit approval for the Guarantee further demonstrates Afreximbank’s confidence in Colluli and comfort investing in Eritrea.
The Guarantee allows ISI’s project financing to advance towards completion.
ISI’s senior debt facility will be utilised to construct a power plant at Colluli.
ISI will utilise a Build Own Operate Transfer model.
The BOOT model diversifies project risk by utilising the experience of proven operators.
ISI’s power generation solution is designed to match the Front End Engineering Design 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.