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Rwanda closes $350m peat-to-power project

The 80MW plant, backed by the AFC, a Turkish energy group and Quantum Power, will be developed by an Abraaj subsidiary.

A power project set to boost Rwanda’s power capacity by 40 percent has reached a $350 million financial close thanks to a group of debt and equity backers from Africa, the US and Europe.

The Africa Finance Corporation served as lead arranger on the deal, helping garner total senior debt facilities of $245 million, providing $75 million in loans and offering an underwriting commitment of $35 million.

It was seconded by Finnfund, a Finnish development finance institution, which acted as lead arranger for a package of mezzanine debt totalling $35 million. Other lenders include the Eastern and Southern African Trade and Development Bank, the African Export-Import Bank, the Export-Import Bank of India and Rwanda Development Bank.

The project is sponsored by Hakan Madencilik, a Turkish energy group, and Quantum Power, an investment platform affiliated to Quantum Pacific Group, a holding trust by London-based Israeli business magnate Idan Ofer.

Once built, the plant will enable a larger share of the population to be connected the grid. Only a quarter of the country’s inhabitants currently have ready access to electricity.

The facility, which is being built in the Mamba Sector of Gisagara District, one of Rwanda’s most remote areas, is expected to take three years to complete.