The Development Bank of Southern Africa (DBSA) on 9 December announced an $81.3m loan to Electricidade de Moçambique (EdM) for the rehabilitation and upgrading of Mozambique’s energy supply network. The 15-year senior debt facility will finance two EdM projects in the cities of Pemba and Maputo. The projects, for which DBSA is the sole lender, are the first of 12 EdM has launched to improve the country’s transmission and distribution networks.
Banco National de Investimento (BNI) assisted DBSA with due diligence, project evaluation, capital raising, and advisory. The pair have a strategic partnership operating through a longstanding memorandum of understanding. BNI also played an important role negotiating guarantees for the project on behalf of the government.
“We have been working with EdM and BNI for the past four years with a funding solution to rehabilitate its electricity network in the cities of Maputo and Pemba”, DBSA group executive Zodwa Mbele said. “What is noteworthy is the fact that DBSA made a strategic decision to assist Mozambique and its utility when no other lender was prepared to assist the country during a time of need, whilst also heeding a call from the Mozambican government to get involved in infrastructure projects”.
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