Milbank LLP advised the Export-Import Bank of China (“CEXIM”) in connection with the financing provided to the Ministry of Finance of the Republic of Guinea (“MOF”) for the development of the 450 MW Souapiti Hydropower Plant and the restructuring of the Kaleta Hydropower Plant totaling $2.3 billion.
CEXIM provided loans totaling approximately $1.72 billion to be utilized towards both the development of the Souapiti Hydropower Plant and the restructuring of the existing 240 MW Kaleta Hydropower Plant (which Milbank concurrently advised on). The Souapiti project is sponsored by China International Water & Electric Corporation (“CWE”), which is also serving as the engineering, procurement and construction contractor.
Scheduled for completion in 2021, the Souapiti project will be the largest hydropower project in Guinea and is anticipated to increase access to electricity in the country where currently only about 34% of the nationwide population has the benefit of electric power. The Souapiti project also aims to supply electricity to several of its neighboring countries in West Africa, alleviating electricity shortages not only in Guinea but also in other parts of the region.
The Milbank deal team, based in both Beijing and Tokyo, was led by Global Project, Energy and Infrastructure Finance partners Shepard Liu and Aled Davies and included associates Guannan Wang, Lewis Blundell, Daniel Elliott, Jenny Zhang and legal assistants Emma Pan and Marcia Song.
Mr. Liu said, “We’re pleased to have assisted CEXIM in successfully closing this highly complex landmark financing that will provide much-needed energy to Guinea’s residents and neighboring countries.”
Mr. Davies added, “A project of this magnitude required exceptional interoffice collaboration and ingenuity, especially considering that it involved multiple jurisdictions and the need to develop some creative solutions to enhance underlying credit. The closing of this deal further cements Milbank’s leading position advising on cutting-edge global project financings.”
Milbank recently advised CEXIM on a number of investments in Africa, including a €500 million financing extended to the Republic of Guinea to fund two major transportation infrastructure projects.
