ZCCM Investments Holdings (ZCCM-IH) will provide both debt and equity financing totaling US$50 million for the 300MW Maamba coal power project, the company has announced.
In a market announcement released by its company secretary, Charles Mjumphi, ZCCM-IH disclosed that it would provide debt financing of US$15 million at 9% interest per year payable over 10.25 years with a grace period of three-and-a-half years.
A couple of months ago, Maamba Energies Limited, which is developing its US$400 million phase 2 coal-fired power generation plant to add another 300MW to its existing plant of the same capacity, reached an agreement with its anchor lenders.
Approximately US$300 million is being financed by a consortium of lenders, including NAPSA, while the remaining US$100 million will be financed through shareholders’ equity in proportion to their shareholding.
Nava Bharat Singapore Pte Limited, which owns 65% of the company, and ZCCM-IH (35%) will provide equity financing of US$65 million and US$35 million respectively.
“The Board wishes to confirm that the terms extended to ZCCM-IH in this financing arrangement are similar to those offered to independent lenders in the consortium thereby ensuring fairness and transparency. Accordingly, the loan terms are established on an arm’s- length basis,” the market announcement read.
