AFC participates in US$750m Jubilee Field deal
Masahudu Ankiilu Kunateh,Ghanadot
Accra, July 15, Ghanadot - Africa
Finance Corporation (AFC), an organization with a focus on
financing infrastructure, industry and financial assets in
Africa has announced participation in a loan syndication to
raise US$750 million loan facility to develop phase 1 of the
landmark Ghanaian Jubilee Oil Field.
With barely three years into operation, AFC’s US$50 million
exposure in this syndication represents the first engagement
in an oil and gas exploration field and in Ghana for that
matter, by the organization formed by public and private
Africans to meet financing gaps on the continent.
Kosmos Energy, operating in a consortium with leading oil
investors will use the loan facility to finance its share of
the capital expenditure requirement for the development of
the project.
The American oil exploring firm is backed by two of the
world’s largest private equity firms - Warburg Pincus and
the Blackstone Group, who between them have US$148 billion
of assets under management.
The oil field which is currently West Africa’s largest
offshore deepwater find in over a decade, with proven
reserves in excess of 300 million barrels of recoverable oil
has Anadarko Petroleum Corporation, USA; Tullow Oil plc, UK;
and the flagship Ghana National Petroleum Corporation as
other development partners.
AFC’s involvement in financing the project is in partnership
with Standard Chartered Bank London as structuring
bank/Global coordinator, International Finance Corporation (IFC),
BNP Paribas, Société Generale and Calyon.
The rest are Barclays, ABSA of South Africa, and Cordiant
Emerging Loan Fund, all leading international financiers, in
the financing of this project.
In a statement at the signing ceremony, Andrew Alli, CEO of
AFC pointed out that it is much delight to AFC to be part of
the high profile transaction.
On a more important note was because the project has to do
with Ghana and also the pivotal position it holds in
accelerating and deepening cross border, economic growth and
development in the West African region.
“Even though AFC has just set off on its mission, it has
committed various millions of dollars to transport, trade,
energy and infrastructure projects in Sierra Leone, The
Gambia and Nigeria.
“Ghana’s addition is a landmark proves that initiatives by
Africans are beginning to gain results that were desired
many decades ago,” he said.
Executive Vice President and Chief Finance Officer of Kosmos
Energy, W. Greg Dunlevy viewed AFC’s participation in the
transaction as strategic given Kosmos Energy’s position as a
leading exploration and production company in Africa.
Dunlevy believes that AFC as an African financial
institution is best positioned to play a significant role in
the future development of exploration and production
projects across Africa.
Mr Ade Adeola, Managing Director in charge of Project and
Export Finance of Standard Chartered Bank, the lead
arrangers on the transaction also expressed his satisfaction
with working with an African financial institution on an
African transaction of the magnitude.
AFC is an African led financial institution with the mission
to improve African economies by proactively creating,
developing and financing infrastructure, industrial and
financial assets.
It is jointly owned by African governments and private
Africans. AFC will become completely private sector owned
when it gets listed on the international capital market.
Ghanadot
