Kamsar, Thursday, 06 February 2020— Guinea Alumina Corporation S.A. (GAC) announced today that it has won Project Finance International’s prestigious global “Multilateral Deal of the Year” award for its ground-breaking project financing.
GAC received the recognition at the PFI’s annual awards ceremony in London.
GAC’s $750 million deal, signed in May 2019, was the largest-ever project financing for a greenfield mining project in the Republic of Guinea. It was extended by development finance institutions, export credit agencies and international commercial banks.
The loan was the first in which multilateral institutions and international commercial banks participated together in a project financing for a greenfield mining project in Guinea.
GAC’s secured the project financing after extensive due diligence on the company’s technical, commercial, environmental and social commitments and performance, and a public consultation process.
The company’s success in securing the loan set a new benchmark for project financing in Guinea and Africa, potentially improving Guinea and other countries’ access to international capital and boosting their economy.
GAC has now completed the development of a bauxite mine and associated export facilities in Guinea, an investment of over $1.4 billion. The company began exporting bauxite in August last year and reached one million tonnes exported by January.
Aissata Béavogui, Executive Director of GAC said: “This award is a great honour. It was awarded to us by more than 800 of the world’s most senior project finance professionals at this year’s PFI Awards. Securing this project financing was possible because of the technical and commercial robustness of GAC’s project, as well as GAC’s focus on its social and environmental responsibilities. This financing paves the way for other mining projects in Africa. »
Participants in the project financing included International Finance Corporation, The African Development Bank, Export Development Canada, PIDG Ltd’s company The Emerging Africa Infrastructure Fund Limited, Société Générale, ING Bank, Natixis, First Abu Dhabi Bank, Emirates NBD and Mashreq Bank.
Société Générale acted as financial adviser to GAC and ING led due diligence on the project on behalf of the commercial banks.
The Multilateral Investment Guarantee Agency (MIGA) extended political risk insurance cover to commercial banks participating in the loan.
Shearman & Sterling, S.D. Lawyers, Akin & Gump Strauss Hauer & Feld LLP and Walkers acted as legal counsel for GAC. Allen & Overy, Bao & Sons and Maples & Calder acted as legal counsel for the lenders. DLA Piper and Sylla & Partners acted as legal counsel for the Government of Guinea.
GAC produces bauxite, the ore from which aluminium is derived. Once the ramp-up is complete, it will export 12 million tonnes of bauxite per year to international markets.
About Project Finance International (PFI) and PFI Awards
Project Finance International (PFI) is a source of global energy and infrastructure finance news, data and tools. It is published by Thomson Reuters in print every two weeks and updated online daily. The PFI Awards is the industry’s most prestigious annual awards – the winners are announced in December and celebrated at a dinner attended by 600+ project finance professionals every February.