Ghana government has successfully secured EUR 215 million in funding through Investec Bank Ltd., to finance two (2) major hospital projects in Ghana.
Investec Bank Ltd. acted in the capacity of a mandated lead arranger (MLA) to aid in securing two (2) consecutive loans in favour of Ghana’s Ministry of Finance.
The first loan of EUR 189 million, with a loan tenor of 13 years, is funded by the Swedish Export Credit Corporation (SEK), guaranteed by the Swedish Export Credit Agency (EKN) and re-insured by Atradius DSB.
Also, the second commercial loan of EUR 26 million is funded by Investec Bank Ltd., arranged, and structured by Investec to cover the down payment and backed by the Export Credit Insurance Corporation of South Africa (ECIC).
Furthermore, this loan, Investec Bank disclosed, is the “first independently certified Social Export Credit Loan in Africa in the healthcare sector”.
The Deputy Minister of Finance of the Republic of Ghana, Hon. Charles Kofi Adu Boahen disclosed that these loans will help government to expand on the existing health infrastructure in Ghana.
“The projects are part of the Republic of Ghana’s initiative to dramatically expand and develop its regional healthcare infrastructure and services, significantly improving access to quality healthcare services in the post COVID environment for a population of 3 million people in an area covering 24,000km in the western region”.
Hon. Charles Kofi Adu Boahen
Additionally, the funding will be channelled to rehabilitate the Effia-Nkwanta Hospital, as well as to finance the construction of the new Hospital in Agona, Hon. Boahen disclosed.
Meanwhile, the Deputy Finance Minister revealed that, once completed, “the combined hospitals will include a centre of excellence for maternity, obstetrics, gynaecology, and neonatal care (NICU), with 500 beds and over 40,000m2 of modern medical floor area and 6,000m2 of staff housing”.
Furthermore, the combined hospitals “will also provide a trauma and emergency unit, a burns unit, a medical imaging lab, advanced laboratory services and a cath lab / angiography and chemotherapy unit. Training will be provided to physicians, nurses and paramedics as part of the project implementation”.
Hospital projects financing
In the meantime, the Engineering, Procurement and Construction (EPC) contract for the projects will be carried out by Amandi Investment Ltd, with Bluebird Finance & Projects Ltd acting as lead financial advisor for the EPC.
Mr. Ram Shalita, CEO of Bluebird Finance and Projects also disclosed that “Bluebird is delighted to have worked with Investec, EKN, SEK, ADSB and ECIC to structure and arrange this socially impactful financing”.
Also, Mr. Mandisi Nkuhlu, COO at ECIC, revealed that “ECIC is delighted to again partner with Investec in arranging the finance for another critical infrastructure project in Western Ghana and in doing so, secure significant export contracts and jobs for South Africa as well as intra African trade”.
Meanwhile, Acre Impact Capital acted as impact adviser to Investec Bank Ltd., by ensuring that the loans fully align with Loan Market Association Social Loan Guidelines (2021) and are eligible for an independent Second Party Opinion certifying the same from DNV.
Also, Brian Irvine, Head African Structured Debt and Trade Finance at Investec revealed that, this loan transaction demonstrates the growing capacity of African domiciled banks and other financial institutions to structure and arrange debt financing for African projects and trade.
Mr. Irvine further hinted that they are proud to close this financing so soon after the recent EUR 600m western rail project.
Furthermore, Mr. Chris Mitman, Head of Export Finance at Investec Bank Ltd., disclosed that, “this financing demonstrates the critical role export finance can play in delivering high impact affordable social infrastructure as the industry looks forward to the publication of the White Paper on Sustainability in Export Finance this September”.
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