Copperbelt Energy to raise funds for African expansion
Copperbelt Energy, which supplies power to Glencore Xstrata and Vedanta Resources in Zambia, has revealed plans to raise US$150mn through loans to expand business in Africa and finance existing debt
Copperbelt Energy corporate development managing director Michael Tarney said that loans of as much as US$100mn from German and Dutch development-finance institutions will be completed in three months and will have 10-year maturities.
The debt funding deals will be carried out with Dutch development bank FMO and German lender Deutsche Investitions- und Entwicklungsgesellschaft
Copperbelt Energy will also try and raise about US$50mn in a rights offer this year.
Tarney said that the company has tested the market for a bond sale two to three months ago, and concluded that a debt sale will be more expensive than development-finance loans and its maturity will also be shorter.
Bonds may be sold at a later date, he noted.
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Source: African Review