An US$800mn electricity prepayment facility being raised for electricity producer Hidroelectrica de Cahora Bassa in Mozambique has entered general syndication. Mandated lead arrangers on the deal are Calyon and Banco BPI, and the deal was signed and disbursed last November.
According to those close to the deal, it is progressing well with final commitments due in over the next three to four weeks.
The facility was raised on behalf of the government of Mozambique to pay for the acquisition of a majority stake in Hidroelectrica de Cahora Bassa (HCB) from the Portuguese government.
It is Mozambique's first big ticket commercial transaction to be closed without political risk insurance or the support of multilaterals. It is also thought to be the first cross-border electricity prepayment completed in Sub-Saharan Africa. For these achievements, it was granted one of GTR's Best Deals 2007 awards (Click here to read more about the deal’s attributes in GTR March/April 2008).
The facility carries a tenor of 10 years, and the margin being paid is 190 basis points for the first two years, rising to 240bp in years 3-6, and then increasing to 280bp between years 7-10.
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