Mozambique Embarks On Maputo Port’s Us$800 Million Expansion

Grindrod Limited has appointed Standard Chartered Bank as the Sole Financial Advisor on the expansion project of the Maputo Coal Terminal (TCM) in Mozambique, estimated at US$800 million.
 The expansion project will increase the capacity of the port’s coal terminal from an existing output level of 6 million tonnes per annum to 20 million over a period of 6 years.

Grindrod Limited has appointed Standard Chartered Bank as the Sole Financial Advisor on the expansion project of the Maputo Coal Terminal (TCM) in Mozambique, estimated at US$800 million.
 The expansion project will increase the capacity of the port’s coal terminal from an existing output level of 6 million tonnes per annum to 20 million over a period of 6 years.
 In a statement Grindrod said that Standard Chartered’s advisory capacity and structuring expertise will enable Grindrod to seek debt funding from the open market. Debt funding is likely to comprise of a mixture of development finance institutions and commercial banks – with possible support from Export Credit Agencies and Political Risk Insurance providers.
“Given our presence across 16 African markets and a proven project and advisory track record, we have the specialist expertise and capability to ensure the Port’s expansion is adequately financed through to completion,” said Ebenezer Essoka, Standard Chartered’s Chief Executive Officer and Area General Manager of Southern Africa.
 Standard Chartered’s project finance capabilities include specialist focus in ports, infrastructure, mining, oil and gas. Key project finance advisory transactions in Africa include: Financial Advisor to the sponsors of the Gabon Fertilizer project (USD1.5 billion), Sole Debt and Equity Advisor to the Lekki Port Project in Nigeria (USD1.4 billion) and Financial Advisor to Kenya Petroleum Refinery (USD1 billion).
 Additional transactions where the Bank has played a strategic advisory role, include: Sole Financial Advisor to the Oppenheimer Family for the sale of their 40% stake in De Beers to Anglo American (ZAR40.1 billion); Sole Financial Advisor to Optimum Coal in relation to the potential takeover by Glencore (estimated at ZAR9.6 billion); and Sole Financial Advisor to China Investment Corporation (CIC) for their 25.8% stake in Shanduka Group (ZAR2 billion).
“We are pleased to have Standard Chartered as our sole financial advisor on this project, given their level of project finance and advisory expertise already demonstrated across the continent. We are confident they will ensure the sustainable success of this significant project,” said Grindrod Freight Services CEO of Ports & Terminals, Dave Rennie.