(Adds details of ECA financing, banker’s quote)
By Sandrine Bradley
Oct 27 (Reuters) – The Ethiopian government has closed a $865 million financing package that funds the development of some of the country’s railway infrastructure.
The proceeds of the financing will be used to build the Awash-Weldia/Hara Gebeya Railway Project, one of the key railway corridors that will form part of the National Railway Network of Ethiopia.
The financing is split between a $450 million seven-year commercial loan, which includes a syndicate of lenders from Europe, Africa, the Middle East and the US, and pays 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 is also included.
Credit Suisse acted as co-ordinating commercial facility arranger and export credit agency facility lead arranger. Some of the loans have already been disbursed.