The World Trade Review, the global trade finance magazine, named the US $ 296 million project to rebuild the Beitbridge border post among its 11 best global deals of the year.
World Trade Review selects the best offers on the market of the last 12 months.
According to the magazine, the winning deals “feature a mix of trade, commodity, supply chain and export finance, as well as fintech-focused deals.”
Zimborders, a consortium of local businesses, is leading the project to build a new border post.
The project includes, as part of the agreement, the construction of new public facilities in the town of Beitbridge. The main contractor is the construction company Raubex, listed on the JSE.
The transaction consists of US $ 194 million of a senior credit facility, plus US $ 21.9 of equity.
The main arrangers appointed for the transaction are Absa, Nedbank, RMB, Standard Bank. Lenders include Absa, Afreximbank, Emerging Africa Infrastructure Fund (EAIF). The Export Credit Insurance Corporation (ECIC), the South African Export Credit Agency (ECA), acted as the business and political risk insurer for the senior credit facility and, alongside Afreximbank , was a political risk provider for a portion of equity. and loan investments.
“By structuring tranches with OCEs, banks were able to offer competitive financing terms through longer terms and lower interest rates,” says Global Trade Review.
“The complex operation took nearly three years to structure and negotiate with the various public and private entities involved.
According to RMB, the modernization of the crossing point guarantees a more efficient trading system in southern Africa as the border post is “not only the gateway to Zimbabwe but also to Zambia, Malawi and the DRC”.
“Amid the global Covid-19 pandemic, the oil crash, degradations in various countries in sub-Saharan Africa, shortages of US dollar funding and the currency crisis in Zimbabwe, the project has managed to circumvent these obstacles and reach financial close ”said RMB.
Other GTR Agreement of the Year winners include the Cairo Monorail; the £ 2.4 billion Dogger Bank wind farm in the UK; Enel Green Power supply chain program in Mexico; Northvolt, a Swedish startup developing lithium-ion batteries; and the Tanzania Standard Gauge Railway. – newZWire