DEAL: largest ever African infrastructure project financing

Author: Olly Jackson | Published: 8 Jan 2018

The Nacala Corridor rail and port project is the largest ever infrastructure financing project in Africa, and also the first in the region to bring public and private sector investment together.

The aim of the $4 billion project has been to build a route for coal from a mine in landlocked Moatize to a port in Nacala, both located in Mozambique. The project financing covers the construction and operation of a railway line running from both these locations and through Malawi, and the construction and operation of the Nacala port coal terminal.

The landmark financing structure saw $2.7 billion in funding handed down to four separate companies with five separate and different concessions with a mixture of greenfield and brownfield development. Project owner Vale said in a press release that the deal included a loan of $1.03 billion from Japan Bank for International Cooperation and a $1 billion facility from a syndicate of lenders. Another $400 million was provided...