Deals - Jan 18, 2023

Asafo & Co. advised the African Development Bank (AfDB) (as Lead Arranger), the Opec Fund for International Development (OPEC Fund), the Arab Bank for Economic Development in Africa (BADEA) and Banque Ouest Africaine de Developpement (BOAD) on the financing of the 120 MW thermal power plant developed in Malicounda (Senegal).

The EUR 154 million project, which reached financial close on 04 January 2023, was developed by MP Energy (on behalf of the main sponsor Melec Power Gen), Africa50 and Senelec, and involves the design, financing, construction and operation of a 120 MW thermal power plant in Malicounda, Mbour, approximately 85 km from Dakar. Société Générale provided currency and interest rate hedging for the USD portion of the financing, Citibank was engaged as security and intercreditor agent, and as account bank together with Orabank, which also provided support in the execution of the project through arranging a EUR 75 million bridge loan.

The energy generated from the power plant is to be sold under a 20-year power purchase agreement and be connected to the national grid. The plant increases Senegal’s electricity generating capacity by approximately 8%, reduces generation costs and will contribute to the improvement of energy access to the surrounding communities and beyond. The project created over 450 jobs during the construction phase and approximately 50 to 60 jobs during the operation phase.

The ASAFO & CO.  team advising the lenders was led by Simon Ratledge and Pascal Agboyibor (Partners), assisted by Charlène Ntsiba (Senior Associate), Laury Kouakou and Tebogo Ketshabile (Associates).