The Ethiopian government has closed a $865 million financing package that will finance the nation’s railway infrastructure.
Credit Suisse acted as co-ordinating commercial facility arranger and export credit agency facility lead arranger.
The loans are split between financing paid out via asyndicate of lenders from Europe, Africa, the Middle East and the US and totals out as a $450 million seven-year commercial loan, which includes a that will pay 375 basis points over Libor. A $415 million 13-year loan backed by the Swedish Export Credit Guarantee Board (EKN), Eksport Kredit Fonden (EKF) and Swiss Export Risk Insurance (SERV) export credit agencies are also part of the financing.
Turk Eximbank provided a parallel financing of $300 million for the Turkish goods and services under the same project.
“This is a huge financing for Ethiopia, it is the first commercial deal of this size we have seen. Banks have a growing appetite for the Ethiopian market and we expect to see more deals like this,” one banker on the deal said.