Ghana’s ministry of finance and economic planning has signed a 12.5-year US$162.6mn ECA-backed syndicated loan to finance the construction of seven district hospitals.

Barclays acted as co-ordinating mandated lead arranger, bookrunner and agent, while Citi and JP Morgan acted as MLAs on the syndicated loan.

In addition to this, Barclays also arranged a CS55mn (US$29mn) bilateral loan for the same project.

UK Export Finance provided political and commercial risk insurance on the loans, while Clifford Chance acted as legal advisor to the banks involved in the deal, and Ghana-based law firm Oxford & Beaumont took the role of local counsel.

The contract for this project has been awarded to NMS Infrastructure Limited, a UK contractor, which is leading a consortium of both UK and Ghana-based contractors, including Pell Frischmann, TP Bennett and Deacon & Jones, Barclays says in a press release.

The loans will be used to fund the design, construction and equipment of seven district hospitals including the provision of a centralised pharmaceutical and medical supply management system.

According to Barclays, the syndicated loan was heavily oversubscribed, and under the terms of the syndication the Republic of Ghana was able to achieve a competitive all-in cost.

The deputy minister of health for Ghana, Robert Joseph Mettle-Nunoo says: “With the support of Barclays we have been able to achieve an affordable, flexible, timely and cost effective funding solution for the government of Ghana.”

“This financing sets a new benchmark for the government of Ghana and establishes a new blueprint for future financing solutions between the government of Ghana, Barclays, and other UK exporters,” he adds.