1. Genser Energy (“Genser”) (www.GenserEnergy.com) is pleased to announce that it has successfully financially closed an 8-year, $425 million financing package.
2. The proceeds, which are part of a US$325 million senior syndicated loan and a US$100 million mezzanine loan, will be used to refinance existing debt and finance the next phase of expansion projects, including: a 100 million gas pipeline km to Ghana‘s second largest city, Kumasi a 200 mmscfd gas conditioning plant in Prestea, Ghana and a liquefied natural gas (‘NGL‘) storage terminal at Takoradi port as an important step in the strategy of Genser decarbonization to achieve net zero carbon emissions by 2035.
3. The construction of the natural gas pipeline to Kumasi and the Prestea gas processing plant will have significant economic and environmental benefits not only for Genser but also for Ghana and the sub-region from West Africa.
4. The transaction will support Genser’s diversification from the power sector to midstream gas and mark a major milestone in its decarbonization strategy to achieve net-zero carbon emissions by 2035, while contributing significantly to Ghana‘s national climate change goals in the future.
5. emissions reduction.
6. The availability of cheaper and more easily accessible piped natural gas in Kumasi and Ghana‘s central belt through the new pipeline will encourage industries to switch from imported trucked diesel and heavy fuel oil (HFO) to indigenous natural gas as an intensive fuel.
7. low carbon.
8. The pipeline will also support the relocation of power plants from coastal regions to reduce line losses and improve efficiency in the national grid.
9. Additionally, the gas conditioning plant will produce cleaner fuels and establish Ghana as a major producer and exporter of Natural Gas Liquids (NGL).
10. Concurrent with the fundraising, Genser signed a purchase agreement with Trafigura for 100% of the NGLs, primarily propane, butane and ethane, as well as liquefied natural gas (“LNG“) to be produced at the gas conditioning plant in Presthea.
11. In addition, Trafigura participated in Genser’s mezzanine loan and provided additional funds to build additional storage capacity at the proposed Takoradi LGN Terminal.
12. The main loan facility was financed by a consortium of international commercial and regional banks, development finance institutions and funds comprising Standard Bank of South Africa, Absa Bank, Société Générale, Mauritius Commercial Bank, Ninety One, Barak Fund SPC Limited and Development Bank of South Africa.
13. Trafigura, Barak Fund SPC Limited and US Based Fund, Trilinc Global Sustainable Income Fund Master Ltd. provide the mezzanine loan facility.
14. Genser Energy was advised in this transaction by Northcott Capital Limited as financial advisors and Clifford Chance LLP as legal advisors.
15. The Principal Lenders were advised by Trinity International LLP (Legal), Advisian – Worley Group (Technical) and Indecs Consulting Limited (Insurance).
16. Hogan Lovells acted as legal counsel to the intermediate lenders.
17. Baafour Asiamah-Adjei, Chairman and CEO of Genser, stated: “This transaction highlights the hard work and considerable dedication of Genser’s management, employees and stakeholders to make it an attractive and high-value investment.
18. I would like to thank our existing lenders [Standard Bank of South Africa, Absa Bank, Barak Fund SPC Limited and the Development Bank of Southern Africa] who have shown considerable support and commitment to Genser over many years.
19. I am also delighted to welcome our new lenders Société Générale, Mauritius Commercial Bank and Ninety One, as well as Trafigura as an investor and strategic partner of Genser.” Cyril Amadi, Managing Director of Northcott Capital, stated: “We are very pleased that Genser has again entrusted Northcott to advise on another landmark transaction in the African energy space.
20. In 2019 we supported the company to successfully restructure its debt, followed by the diversification of the shareholder base with significant investments in 2021 that laid the foundation for this transaction as one of the largest financings for a Ghanaian private company in the international markets.
21. The consortium of international financial institutions and investors reaffirms Genser’s value proposition and business plan as one of the most successful and innovative African energy solution providers.”
