Clifford Chances advises Genser Energy on its USD425m financing for the expansion of its Ghanaian operations

International law firm Clifford Chance advised Genser Energy, a US-based integrated energy services provider operating in West Africa, in respect of its USD425m financing which includes USD325m syndicated senior loan facilities and a USD100m mezzanine loan facility.

The transaction provides funding to refinance existing facilities and increase Genser’s operations in Ghana including an expansion of GEGL’s existing gas pipeline network with a 105km trunk line to Kumasi (Ghana’s second largest city), the development of a 200mmscf/d gas processing plant in Prestea and the expansion of an NGL storage terminal at the Takoradi Port.

The transaction is part of Genser’s decarbonization strategy by which it aims to achieve net zero carbon emissions by 2035. The new loans will finance Genser’s efforts to help its customers transition from their current fuel sources of imported trucked diesel and heavy fuel oil (HFO) to domestic natural gas, which is a transition, low-carbon intensive fuel. It bolsters Genser’s position as a sustainable energy solutions provider in the West African region and will be a significant contribution to Ghana’s national climate change emission reduction targets. Genser’s development plan includes the delivery of renewable energy plants and infrastructure for zero carbon fuels.

The delivery of comparatively cheaper piped domestic natural gas to Kumasi is required to support Ghana’s on-going relocation of power plants from its coastal regions (where they are currently concentrated), in order to improve efficiency in the transmission and distribution of electricity across the country.

The lending group includes Standard Bank of South Africa, Absa Bank, Société Générale, Mauritius Commercial Bank, Ninety One, Barak Fund SPC Limited and the Development Bank of Southern Africa. The mezzanine loan facility is provided by Trafigura, Barak Fund SPC Limited and the US Based Fund, Trilinc Global Sustainable Income Fund Master Ltd.

Olamide Oladosu comments: “We are delighted to be able to bring our unique offering of market-leading global experience and unmatched deep local knowledge to clients like Genser, who are serious about Africa and are dedicated to delivering practical solutions to Africa’s needs for energy and a sustainable energy transition.”

The cross-practice and cross-jurisdictional team was led by partner Olamide Oladosu and assisted by senior associate Ope Osinubi, associate Julia Li and trainee Ola Popoola in the London Energy & Infrastructure team. Further support was provided by Leonhard Rudolph, Jonathan Forrest and Michael Jack in the London Construction team, and John McManmon, a Counsel in the New York Banking & Finance team.