Genser Energy, a US-based integrated energy services provider operating in West Africa, has completed a US$425 million financing, comprising US$325 million syndicated senior loan facilities and a US$100 million mezzanine loan facility.
The transaction provides funding to refinance existing facilities, and broaden the operations of Genser Energy Ghana Limited (GEGL), including an expansion of its existing gas pipeline network with a 100-kilometre trunk line to Kumasi, Ghana's second largest city, the development of a gas processing plant with 200 million standard cubic feet per day capacity in Prestea, and the expansion of a natural gas liquid (NGL) storage terminal at the Takoradi Port.
The lending group includes Standard Bank of South Africa, Absa Bank, Société Générale, Mauritius Commercial Bank, Ninety One, Barak Fund SPC Limited and the Development Bank of Southern Africa.
The mezzanine loan facility is provided by Trafigura, Barak Fund SPC Limited and US-based fund Trilinc Global Sustainable Income Fund Master Ltd.
Northcott Capital acted as Genser's financial advisers, while Clifford Chance acted as legal adviser.
The transaction is part of Genser's decarbonization strategy to achieve net-zero carbon emissions by 2035. The new loans will finance Genser’s efforts to help its customers transition from their current fuel sources of imported trucked diesel and heavy fuel oil to domestic natural gas, which is a low-carbon intensive fuel.
The delivery of comparatively cheaper piped domestic natural gas to Kumasi is required to support Ghana's ongoing relocation of power plants from its coastal regions, where they are currently concentrated, to improve efficiency in the transmission and distribution of electricity across the country.