Absa Capital, Barclays Plc team up on $867m Uganda Hydropower project  

  • One of the largest private power sector investments in Sub-Saharan Africa
  • Major multilateral and bilateral development agencies provide funding

Absa Capital, one of two mandated lead arrangers for the commercial debt facility for the $867m Bujagali Hydropower Project in Uganda, has teamed up with its global affiliate Barclays Plc in one of the largest ever private power sector investments in Sub-Saharan Africa. 

Anand Naidoo, Head of Power and Energy at Absa Capital, said that Absa Capital has underwritten and raised a 16-year commercial debt facility for the project and that the bank will continue to be active in Africa in the future. Absa Capital will also act as hedging bank for the facility and facility agent for the commercial debt.

“The deal marks an important step in developing Absa Capital’s African power credentials.”

 “Absa Capital with Barclays Uganda and Barclays Wealth (London) has also secured the onshore and offshore account bank mandates. In addition, Barclays Kenya has provided guarantees for the abandonment bond for sponsors and provided funding for the equity investment made into the project by Industrial Promotion Services of Kenya,” said Naidoo.

Deal sponsors, Industrial Promotion Services (part of the Aga Khan Network) and Sithe Global (majority owned by The Blackstone Group, the New York-based private equity firm), mandated Absa Capital as one of two mandated lead arrangers for the $115m commercial debt facility.

Other lenders to the project include International Finance Corporation, African Development Bank, European Investment Bank, DEG – Deutsche Investitions- und Entwicklungsgesellschaft mbH, Agence Française de Développement, Société de Promotion et de Participation pour la Coopération Economique, Kreditanstalt für Wiederaufbau, Nederlandse Financierings-Maatschappij voor Onwikkelingslanden N.V. and Standard Chartered Bank.

Note to the editor:

About Absa Capital
Absa Capital, a division of Absa Bank Limited (Absa) and affiliated to Barclays Capital, is a leading South African investment bank with global reach, offering clients financing, risk management and advisory solutions in a wide range of currencies and structures across the globe.

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