A syndicate of lenders including the International Finance Corporation (IFC) have signed a US$185mn project financing facility with Guyana Goldfields to develop and build the Aurora Gold project in Guyana, Latin America.
The IFC will contribute US$45mn from its own account and a further US$33.6mn will come from the IFC-managed co-lending portfolio platform: a new syndications platform that offers institutional investors the chance to passively participate in IFC’s future senior loan portfolio.
The IFC acts as co-ordinating bank for the remaining US$106.4mn in loans from other lenders under the facility: EDC, ING Capital, Caterpillar Financial Services Corporation and the Bank of Nova Scotia.
The facility includes two tranches: a US$160mn tranche and a US$25mn tranche for overrunning costs. The maximum tenor is eight years, and it carries a weighted average margin of three-month Libor plus 5.11% for tranche one and the same weighted average rates plus 0.5% for tranche two, if drawn. Drawdown of the facility is expected this month.
“Guyana Goldfields will be one of the first project financings in Guyana, setting a precedent and positive example for investors across sectors,” says vice-president for Latin America, the Caribbean and Sub-Saharan Africa at the IFC, Jean Philippe Prosper.
Originally approved in June this year, common terms under the agreement have now been signed and the Aurora Gold project is scheduled to start commercial production in mid-2015.