Senelec nears close on ECA-backed deal
Senegalese state-owned electricity utility Senelec is expected to reach full financial close on an approximately $100 million ECA-backed facility in June (2019) to finance the expansion of the African country’s electricity grid.
Sole lender BNP Paribas will put up the 12-year debt. Commercial contracts will be mandated in May, and the respective ECA will extend support depending on the EPC contractor’s country of origin. “The duration of the deal should be shorter than last year’s ECA-backed deal,” says a source close to the deal.
On 31 January 2018 Senelec closed a $272 million Bpifrance-covered loan provided by BNP Paribas (facility agent and hedge provider) and Credit Agricole to finance the construction of five extra high voltage transformer stations, 200km of underground and overhead transmission lines, over 100 distribution substation and a regional dispatch centre. France’s Vinci Energies International won the EPC contract in February 2017.
The deal comprises four tranches: a 12-year (15 years door-to-door) €164.4 ($203.75 million) Bpifrance-backed facility, a €39 million 5-year uncovered commercial tranche, a $75 million 14.6-year Bpifrance direct loan, and a local currency XOF 11 billion ($20 million) seven-year tranche provided by BNP Paribas. Hogan Lovells provided legal counsel to the lenders.
