Lagos, 5 December 2019: Africa Finance Corporation (“AFC” or the “Corporation”), the leading infrastructure solutions provider in Africa is pleased to announce its Joint Development Agreement (“Agreement”) with Brahms Oil Refineries Limited (“Brahms”), which is part of Brahms Group, a diversified company based in Switzerland that has a strong industrial & international finance network and an excellent knowledge of Sub-Saharan Africa, to act as co-developer on the development and subsequent financing to a petroleum storage and associated refinery project in Kamsar, Guinea. This will include a 76,000m3 crude oil storage terminal; 114,200m3 storage terminal for refined products; ancillary support transportation infrastructure, and 12,000 barrels oil per day modular refining facility (the “Project”).
Through this joint development, AFC will invest in the project development workstreams that should ensure the Project reaches financial close in 2020.
This Project will be instrumental for Guinea to achieve its economic and developmental goals, which are severely hampered by Guinea not having any refining capacity. Once operational, the Project will have a refinery capacity that is the equivalent of one-third of its demand for refined products, thereby reducing its reliance on imported refined products, improving the country’s balance of payments, and reducing foreign currency demand. It will also allow for direct & indirect job creation and enhance the development and productivity of other sectors, especially mining, which today accounts for 15.3% of the country’s GDP but could contribute even more if the country had the necessary infrastructure to maximise and locally beneficiate its natural resources. The Project is strategically located in Kamsar, which is one of the larger mining regions in the country.
To increase its impact on Guinea, AFC is considering several projects in the country to create an integrated ecosystem. This would include, alongside this Project, a 33MW solar project port, and other mining projects, all of which will complement AFC’s earlier investment in Alufer’s Bel Air bauxite mine.
Amadou Wadda, Senior Director Project Development and Technical Solutions Team at AFC, commented on the announcement: “We are delighted to work with Brahms to accelerate the development of this instrumental project in Guinea, an AFC member state. The Brahms refinery project will have a tremendous impact in the country’s development.”
Daouda Fall, CEO of Brahms Oil Refineries Limited, added: “ To partner with AFC is a great milestone and brings us one step closer to our goal of reaching financial close in early 2020 and kickstarting construction. We will greatly benefit from AFC’s experience in setting up and financing infrastructure projects.”
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About AFC – www.africafc.org
AFC, an investment grade multilateral finance institution, was established in 2007 with an equity capital base of US$1 billion, to be the catalyst for private sector-led infrastructure investment across Africa. With a current balance sheet of approximately US$5.07 billion,
AFC is the second highest investment grade rated multilateral financial institution in Africa with an A3/P2 (Stable outlook) rating from Moody’s Investors Service. AFC successfully raised US$650 million in 2019, US$500 million in 2017 and US$750 million in 2015 through Eurobond issuances; out of its Board-approved US$3 Billion Global Medium-Term Note (MTN) Programme. All Eurobond issues were oversubscribed and attracted investors from Asia, Europe and the USA.
AFC’s investment approach combines specialist industry expertise with a focus on financial and technical advisory, project structuring, project development and risk capital to address Africa’s infrastructure development needs and drive sustainable economic growth. AFC invests in high-quality infrastructure assets that provide essential services in the core infrastructure sectors of power, natural resources, heavy industry, transport, and telecommunications. To date, the Corporation has invested over US$6.6 billion in projects within 30 countries across Africa.
About Brahms Oil Refineries Limited – www.brahmsrefineries.com
Brahms Oil Refineries Limited, is a United Arab Emirates based company incorporated to promote, structure and implement modular refineries solutions that are able to provide local strategic production within countries and at the same time reduce the import burden.