The Asian Development Bank has signed a loan equivalent of up to $235 million with Thailand's B.Grimm Power to develop and enhance renewable energy capacity in member countries of the Association of Southeast Asian Nations. B.Grimm Power's total distributed power generation capacity is expected to increase by over 50% to 2,500MW by 2022, while the renewable energy share in its portfolio will rise from 10% to 30%.
The World Bank is considering a refinancing package for the controversial Bujagali hydropower project in Uganda - a 250MW hydropower station built on the River Nile - amid a campaign from civil society groups and the bank's own watchdogs. The project was funded by the World Bank, European development finance institutions, and private financing in 2012 but needs additional financing to make the electricity it produces more affordable to Ugandans.
Activists have urged the bank to use the refinancing deal as an opportunity to settle outstanding compensation claims from impacted communities; and to push the Ugandan government to protect a key ecological site downstream.
The Eurasian Development Bank (EDB) and Kazakh mining group Bogatyr Komir signed a €196.6 million loan agreement to finance the modernisation of coal production processes at the Bogatyr mine near the city of Ekibastuz, in Pavlodar province, by introducing continuous mining technology. This is expected to raise output to 50 million tonnes, improve the quality of end products, cut mining costs, and reduce adverse environmental impacts.
The Inland Waterways Authority of India (IWAI) has appointed KPMG to develop an asset management and operation framework for capacity augmentation of navigation on the Haldia-Varanasi stretch of National Waterway-1 (Ganga) as part of the World Bank-supported Jal Marg Vikas Project (JMVP. KPMG will also develop a plan to encourage investment in PPP projects involving freight movement and multimodal logistics parks.
The European Investment Bank has signed an intermediated loan agreement of €30 million with Raiffeisen Leasing Bulgaria to finance projects of small and medium-sized enterprises and mid-cap companies. The partners expect that the loan will benefit more than 150 companies operating in Bulgaria in agriculture, manufacturing, transportation and storage.
A consortium of Air Liquide, AkzoNobel Specialty Chemicals, Enerkem and the Port of Rotterdam have agreed to develop a €200-million waste-to-chemistry facility in Rotterdam to convert non-recyclable mixed waste, including plastics, into clean methanol for use in the chemical industry. Dutch Rabobank has been appointed as the lead advisor for the financing process. The project is supported by the city of Rotterdam, the Province of Zuid-Holland and regional development agency InnovationQuarter.
Eurasian Development Bank (EDB) analysts forecast positive economic growth in the lender's member states and a 2.2% increase in the region's GDPs in 2018. In Armenia GDP is expected to rise by 3%, Belarus 2.6%, Kazakhstan 3.7%, Kyrgyzstan 4.2%, Russia 2%, and Tajikistan 7.3%. At the end of 2017, the region's GDP grew by 1.8%, compared to a decline of 0.1% in 2016.
The draft bill for the creation of the Romanian Development Bank has been approved by the Senate. The lender is set to focus on financing small and medium-sized enterprises, through the state aid measures, and large infrastructure projects. The state-owned bank will have an initial starting capital of RON 1 billion (€214 million).
General Motors has proposed an investment of $2.8 billion into its loss-making South Korean operations over the next ten years and has asked Seoul to provide its share of the funds throuh the Korea Development Bank.
GM owns 77% of its South Korean unit GM Korea, while state-run KDB owns a 17% stake.
The Asian Development Bank (ADB) has approved loans totaling $360 million to buy modern rolling stock and support reform in Bangladesh Railway to help promote a shift from roads to rail. Bangladesh Railway will procure 40 broad gauge locomotives, 125 luggage vans, and 1,000 wagons for freight trains for use on major lines of the rail network.
The International Finance Corporation has signed a memorandum of understanding with the Bankers Institute of Philippines and the Mongolian Bankers Association to foster green banking practices in the two countries. The deal will "advance sustainable finance and green banking practices in the Philippines and Mongolia through capacity development and knowledge-sharing".
The Japan Bank for International Cooperation (JBIC) has signed a final agreement on the formation of a joint venture company to promote Japanese investment in the Advanced Special Economic Zones Free Ports in the Russian Far East. This joint venture company - the Japanese Project Promotion Vehicle in the Far East Limited Liability Company - will be co-founded by JBIC, the Far East Investment and Export Agency, and JSC The Far East and Baikal Region Development Fund.
The World Bank has agreed to provide $486 million to Nigeria to support its Nigeria Electricity Transmission Project. The funds will be used to upgrade electricity transmission substations and lines in the region. The World Bank will be financing the project through International Development Association credit and an International Development Association Scale-Up Facility credit.
The European Investment Bank (EIB) has appointed Marjut Santoni as Secretary General. She will start her new role on 1 March. From 2013 to 2015, she was Deputy Chief Executive of the European Investment Fund, before being appointed to the position of Deputy Secretary General of the EIB in September 2015.
The European Investment Bank (EIB) has agreed to lend €75 million - the first tranche of an approved loan of €150 million - to Banca Transilvania, the second largest bank in Romania, to co-finance projects undertaken by the country's SMEs and mid-caps.
The Islamic Development Bank (IsDB) is launching a new fund which will provide seed money to innovative start-ups and small and medium-sized enterprises. Its Transform fund, which has a target capital of $500 million, will run in tandem with a new online hub called Engage, designed to connect innovators to each other and assist them in developing their ideas. Both the platform and the fund will focus on projects related to six Sustainable Development Goals, namely greater food security, healthier lives, inclusive and equitable education, sustainable management of water, access to affordable and clean energy, and sustainable industrialisation across the developing world.
The European Bank for Reconstruction and Development (EBRD) is providing a credit line for small and medium-sized enterprises for €30 million, a trade finance limit of up to $10 million, and a risk-sharing framework of up to €10 million to Tunisia's Union Bancaire pour le Commerce et l'Industrie (UBCI). The loan will be on-lent to SMEs to increase their access to funding.
The Islamic Development Bank (IsDB) has signed a $110 million agreement with Sierra Leone to help finance the Kambia-Tomparie-Kamakwie Road construction. The $134.60 million project is co-financed by the Saudi Fund, which is contributing $20 million, while the government of Sierra Leone will pay $4.6 million.
State-run Korea Development Bank (KDB) will put Daewoo Engineering & Construction Co. up for sale again after restructuring the ailing builder. The fate of Daewoo Engineering was thrown into uncertainty earlier this month after a smaller builder, Hoban Construction Co., dropped its bid to buy the bigger rival due to losses in Daewoo Engineering's overseas businesses. KDB's fund holds a 50.75% stake in Daewoo Engineering and the fund will expire in July 2019.
Brian Edmondson, global head of trade and working capital finance at Finastra, outlines how government initiatives, a drive to digitise and a new spirit of collaboration among banks, fintechs and platform providers are slowly helping trade finance reach the ‘long tail’ of SMEs.
The European Investment Bank and ING have signed a €300 million agreement to support green investments for the European shipping market. ING and EIB will each contribute €150 million to the facility. This agreement will ensure that sponsors of green and sustainable projects in the maritime transport sector can benefit from advantageous financial terms.
The Nordic Investment Bank and the global chemicals company Kemira Oyj have signed a loan agreement worth €90 million to finance the completed expansion of the company's sodium chlorate production capacity in Joutseno in 2016-2017 and RD investments during 2016-2019.
The seven-year loan has financed the construction of a new cell room for sodium chlorate production at Kemira's facility in Joutseno, in south-eastern Finland.
The European Investment Bank (EIB) is set to confirm $69 million of new infrastructure and private sector investment in Rwanda. This will include announcement of the EIB’s first public sector investment in the country to support construction of the first public sewage system in Rwanda.
India's Low Income State Infrastructure Equity Partnership (the Neev Fund), with co-investment from the UK Department of International Development and the State Bank of India, has made an undisclosed investment in solar developer and construction service provider SunSource Energy. Economic Laws Practice acted as legal advisor and Venturebook Capital Advisors was the financial consultant to the transaction.
Turk Eximbank and Japan Bank for International Cooperation (JBIC) have signed a memorandum of understanding to pave the way for investors and exporters of the two countries to collaborate in current and potential markets. Turkish and Japanese companies, which are cooperating in the sectors of industry and infrastructure in other countries, will be supported within the scope of the MoU.
The Nordic Investment Bank and the special-purpose vehicle SKR Spallation AB have signed a 23-year loan agreement of €30 million for the construction of offices and laboratories at the site of the European Spallation Source in Lund, southern Sweden.
The project includes the construction of laboratories and workshops to support the research conducted at the ESS facility. In addition, office premises with up to 450 work places and a canteen for 200 people will be built.
The European Bank for Reconstruction and Development has agreed a €50 million loan to Nibulon Group, one of Ukraine's largest grain exporters, to help improve logistical solutions, increase the firm's volumes of cargo transported on inland waterways by up to 4 million tonnes a year, and increase its grain exports by up to 8 million tonnes a year. The financing will be structured as an A-loan of up to $40 million for the EBRD's own account and a B-loan of up to $10 million, which will be syndicated to commercial banks.
The European Bank for Reconstruction and Development is supporting Egypt's efforts to attract foreign direct investment in the country's agribusiness sector with a $52 million loan to Angel Yeast Egypt, a global manufacturer of yeast and yeast extract which is fully owned by China-based Angel Yeast Co. The loan will enable Angel Yeast Egypt to increase production of dry yeast, which is mainly exported, and to launch a yeast extract, a higher value-added product.
The European Union is providing €38.5 million to finance the three-stage modernisation of Kosovo's railway infrastructure. The project will improve the connection between Kosovo's railway network and the wider European network through Pan-European Corridor VIII and Corridor X, running southwards to FYR Macedonia and northwards to the Serbian border. The grant covers the southern section of Kosovo's rail route 10, linking Fushë Kosovë near the capital Pristina with the border of FYR Macedonia. The grant follows a senior loan of €39.9 million from the EBRD in 2015.
The World Bank Group and the Government of Iraq have signed two projects totalling $510 million to help improve living conditions, enhance water supplies, and create jobs. The two projects, along with the ongoing $750 million Emergency Operation for Development program and other planned commitments, will increase the World Bank's total commitment to Iraq to $4.7 billion, compared to $600 million four years ago.
The BRICS New Development Bank (NDB) has agreed a $100 million loan to finance the Rajasthan Water Sector Restructuring Project for the Desert Areas in India. It is the first tranche loan approved by the NDB under the Multi Tranche Financing Facility of $345 million for this project. The aim is to rehabilitate the 678km long Indira Gandhi Canal system built during 1958-63.
The European Bank for Reconstruction and Development (EBRD) has appointed Angela Sax the new head of office for its operations in Moldova. She joined the EBRD Resident Office in Armenia in May 2006 where she has worked on a variety of projects in municipal infrastructure, property, manufacturing, agriculture and other industries.
The Japan International Cooperation Agency (JICA) has signed an Official Development Assistance loan agreement of about $700.9 million with the African Development Fund. It represents the first JICA loan provided to the ADF.
The Nordic Investment Bank (NIB) and the Swedish mining and smelting company Boliden have signed a long-term loan agreement of €110 million for investments at the Aitik copper mine and the Rönnskär smelter in northern Sweden.
The eight-year loan will finance the installation of a new surface crusher and water management at Boliden's Aitik copper mine, near the town of Gällivare.
The loan will also finance the expansion of Boliden’s Rönnskär smelter near Skellefteå. The project includes the excavation of a new underground deep deposit, a water treatment plant, and new processes for the reduction of sulphur dioxide and dioxins.
The European Investment Bank (EIB) has approved a loan of up to €52.5 million to Northvolt, which is planning to build a 32GWh capacity battery storage R&D and production facility in Västerås, in the north of Sweden. The European Commission (EC) is involved in the financing of the project via InnovFin, which is part of the EC's Energy Demo Projects Facility.
Farmers whose land was bought for a Bidco palm oil project in Uganda have been compensated. The payoff to the 36 farmers follows mediation by the dispute resolution office of the International Finance Corporation. A Ugandan environmental lobby last year filed the case at the IFC's ombudsman on behalf of the Bugala Farmers Association, claiming their land was grabbed and that Bidco had degraded the environment to pave way for palm oil production.
The US doubled its financial support for solar power projects overseas last year under a climate-friendly investment policy written in the last days of Barack Obama's administration. The Overseas Private Investment Corporation's lending to solar projects hit $250 million in 2017, supporting ventures in India, Africa and Latin America. OPIC loaned more than $630 million to foreign energy projects last year, 90% of which were solar, wind, or other low-carbon ventures.
The outline of the long-awaited $1.5 trillion infrastructure initiative has been unveiled by the White House that proposes a $200 billion government commitment over ten years, tax incentives, allocation of funds to rural projects, and changes to the permitting process. Fleshing out the details will rest with 11 House and Senate committees that oversee policy in these areas.
Florida-based MagneGas Corporation has signed a letter of intent to form an Ireland-based holding company for the express purpose of acquiring 100% of Infinite Fuels, a biofuels company based in northern Germany. MagneGas will initially own a 40% stake in the joint venture, with the possibility of increasing the Company's equity stake to 70%. The initial transaction is expected to be funded through a combination of cash and equity in the new joint venture.
The joint venture will operate in two renewable energy segments. First, Infinite Fuels will launch its biodiesel operations at an existing facility based in northern Germany, currently operating through a public-private partnership.
The second initiative will be to launch the first MagneGas2 production facility in Europe. This project is currently part of a combined project financing application with a European Union government backed agency. Terms of the financing application are currently confidential. Operations under the new joint venture are expected to launch late in the first quarter of 2018.
UK engineering consultant WSP has been appointed by the Southern African Power Pool to develop a proposed 330 kV interconnector between Zambia and the Democratic Republic of Congo (DRC).
The project has received financial backing from the African Development Bank, the World Bank and the AREP programme.
Dutch development bank FMO has committed to invest up to $25 million in JCM Power, a Canadian-based renewable energy independent power producer developing and operating renewable energy projects in Africa, Latin America and South Asia. The investment agreements allow JCM Power to draw down on FMO's commitment as needed to fund construction equity and the acquisition of additional project interests, with a portion available for development and corporate costs.
South Australia’s Renewable Technology Fund is supporting a $117.5 million renewable-hydrogen electrolyser demonstrator plant with a $4.7 million grant and a $7.5 million loan. Hydrogen Utility's (H2U) project at Port Lincoln on the Eyre Peninsula, will use a solar and wind energy will power a 10MW hydrogen-fired gas turbine and a 5MW hydrogen fuel cell.
The European Bank for Reconstruction and Development is providing a loan in Jordanian Dinar - equivalent to $20 million - to Cairo Amman Bank for on-lending to local micro, small and medium-sized enterprises.
The government-backed Swedish Energy Agency is to contribute €15 million towards Northvolt's planned €4 billion lithium-ion battery production facility in Västerås. This follows an intial undisclosed investment by ABB and €10 million from both Vestas and Scania.
The European Bank for Reconstruction and Development is extending a $22 million loan for the construction and operation of a 50MW photovoltaic plant in the Risha region of Jordan.
The loan will be provided to Risha for Solar Power Projects PSC, a Jordanian company fully owned by the International Company for Water and Power Projects. The EBRD loan is provided alongside parallel loans from the German Investment Corporation DEG and the Arab Bank, of $16 million each.
The European Bank for Reconstruction and Development (EBRD) is providing a $52 million loan for the construction and operation of a 45MW wind farm in the Shobak region of Jordan.
The loan will be provided to Shobak Wind Energy PSC, a company majority owned by Alcazar Energy Partners. It is split between an A loan provided on the EBRD's own account for $26 million and a B loan funded by the Europe Arab Bank for the same amount. The Islamic Corporation for the Development of the Private Sector has also provided a parallel tranche of Islamic finance totalling $26 million alongside the EBRD's loan.
The conference will bring together project investors and developers to discuss the financing for low carbon energy and infrastructure projects across Asia, including power, renewables, infrastrcuture and transportation projects.
TXF is back in DC! We'll be examining how multilaterals are evolving to fulfil an expanded remit, while maintaining a focus on development and trade facilitation. Join corporates and leading practitioners in agency finance to debate industry challenges.
To kick off TXF Global 2018, we'll be bringing together senior developers, government personnel and investors to focus on project finance deals. Our dedicated Project Finance Day is a must for all infrastructure pro's!
The party of the year is back for 2018! TXF Global brings you all things Export & Agency Finance to the colourful city of Prague. Described as the fairy-tale city, TXF Global is here to make all your export finance dreams come true...