East Africa

Credit Suisse Mandated For $865M Ethiopian Railway Financing Package

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Credit Suisse today announced that it was mandated by the Ethiopian government as the Co-ordinating Commercial Facility Arranger and Export Credit Agency Facility Lead Arranger for an $865 million financing package to fund the development of part of the country’s railway infrastructure.

The financing (disbursement of which has already commenced) is split into a $450 million seven-year final maturity Commercial Facility, which includes a syndicate of lenders from Europe, Africa, the Middle East and the US, and a $415 million 13-year final maturity facility backed by the Swedish Export Credit Guarantee Board (EKN), Eksport Kredit Fonden (EKF) and Swiss Export Risk Insurance (SERV) export credit agencies. In addition to Credit Suisse, the Mandated Lead Arrangers for the EKF, EKN and SERV- backed facililties are Deutsche Bank AG, ING Bank (a Branch of ING-DiBA AG), and KfW IPEX-Bank. Turk Eximbank has provided a parallel financing of USD 300 million for the Turkish goods and services under the same Project.

The proceeds of this financing will be used to construct the Awash-Weldia/Hara Gebeya Railway Project, one of the key railway corridors which will form part of the National Railway Network of Ethiopia. This project is being undertaken by the Ethiopian Railways Corporation and will be constructed over the next three years. The railway will run between the Ethiopian towns of Awash and Weldia and will provide essential infrastructure which will contribute to economic development in the region.

Yapi Merkezi Insaat ve Sanayi AS, a Turkish company, is the appointed contractor on the project and will

design and construct 389km of the Awash-Weldia/Hara Gebeya Railway line. The financing package was

signed in July 2014 and first funding achieved in August 2014.

The railway has been financed in accordance with the Equator Principles (EPIII), a risk management

framework adopted by a range of financial institutions for determining, assessing and managing

environmental and social risk in infrastructure projects.

The financing has also been arranged under the OECD Common Approaches for Officially-Supported

Export Credits and Environmental and Social Due Diligence which commit OECD countries to taking

environmental and social impacts into account when granting officially supported export credits.

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