Financing
In 2004, a debt funding package totaling US$199 million and €64.9 million was signed with a lender group comprising the European Investment Bank (EIB), The African Development Bank (AfDB), FMO (a Dutch development finance institution), KfW (a German bank), Emerging Africa Infrastructure Fund Limited (EAIF) and ABSA (a South African Commercial Bank). Political risk insurance was provided by MIGA (a member of the World Bank Group) for the KfW (MIGA) tranche. Political and commercial insurance cover was provided by Hermes for the KfW (Hermes) tranche and by the Export Credit Insurance Corporation of South Africa (ECIC), the South African export credit agency, for the Absa facility.
Also in 2004 Kenmare successfully completed its Moma Project equity financing by raising Stg£ 53 million.
Details of loan facilities are set out below:
| Summary of Debt Financing | |||
|---|---|---|---|
Maximum Available (figures in millions) |
Maturity |
Interest Rate |
|
| Senior Debt | |||
| AfDB | US$40 | 2018 | LIBOR+4.25% |
| ABSA (ECIC) | US$80 | 2015 | 5.85% |
| EIB | €15 | 2018 | EFR+3.50% |
| KfW (Hermes) | US$25.5 | 2015 | 5.45% |
| KfW (MIGA) | US$15 | 2018 | LIBOR+3.50% |
| FMO | US$19.5 | 2016 | LIBOR+5.30% |
| EAIF | US$5 | 2018 | LIBOR+5.30% |
| Total | US$185 + €15 | ||
| Subordinated Debt | |||
| EIB | €40 | 2019 | 10% |
| FMO | €7.1 | 2019 | 10% |
| EAIF | US$10 | 2019 | LIBOR+8.00% |
| Total | US$10 + €47.1 | ||
| Standby Subordinated Debt | |||
| EIB | €2.8 | 2019 | 10% |
| FMO | US$1.5 | 2019 | 10% |
| FMO | US$2.5 | 2019 | LIBOR+8.00% |
| Total | US$4 + €2.8 | ||
| Additional Standby Subordinated Debt | |||
| EAIF | US$12 | 2019 | LIBOR+5.00% |
| FMO | US$10 | 2019 | LIBOR+5.00% |
| Total | US$22 | ||
The Additional Standby facility was put in place in August 2007. The current weighted average interest rate of the debt package is 8% and loan tenors range from 8 to 11 years.
In recognition of Kenmare's achievement in arranging the largest structured finance package ever put together by a non-major mining company, it has received two pretigeous awards, Deal of the Year 2004 Project Finance Magazine Award and a Mine Finance Award for 2004 from the Mining Journal.
