The Emerging Africa Infrastructure Fund (EAIF) and French green energy developer Akuo Energy on 29 January announced the signing of financing agreements for the Akuo Kita solar power plant, to be built at Kita in southern Mali. It will be the first photovoltaic power station in Mali owned and run by a private sector independent power producer. Two other Private Infrastructure Development Group (PIDG) companies, GuarantCo and Green Africa Power contributed to the project financing.
The €78m ($97m), 50MW project includes transmission infrastructure connecting into the local electricity grid. Akuo Kita Solar will sell its power to Electricité du Mali under a 28-year power purchase agreement.
EAIF, as mandated lead arranger, has arranged the senior debt facility for a total of €54m over 15 years. EAIF’s share of the debt package is €17m. The transaction was co-arranged with the Banque Ouest Africaine de Développement. The other senior debt providers are FMO and Banque Nationale de Développement Agricole. GAP is providing a mezzanine facility of €8m over 20 years and GuarantCo a debt service reserve account guarantee. The project marks EAIF’s first mandated lead arranger role in a Francophone African country.
Akuo Kita is EAIF’s second project in Mali. In June 2017, it announced its backing for Albatros Energie Mali, which is building a 90MW heavy fuel oil power station.
