30 July 2015
- Russell Wells, Delphine Siino Courtin, Jiahua Ni, Tim Steadman, Paget Dare Bryan, Corinne Duvnjak, Alexandra Blake
- London, Paris, Beijing
Clifford Chance advises on US$825 million financing of the Maamba Collieries Power Generation Project in Zambia
International law firm Clifford Chance has advised the lenders on the US$825 million financing of the construction and operation of a coal fired power plant and an adjacent coal mine owned by Maamba Collieries Limited, located in Maamba, Zambia. The lenders were Barclays Africa (formerly ABSA Bank), Standard Chartered Bank, Industrial and Commercial Bank of China Limited, Bank of China Limited, Industrial Development Corporation of South Africa Limited and Development Bank of Southern Africa.
The 300MW project is instrumental in helping the Zambian government to achieve its aim of diversifying the power sector away from its heavy reliance on hydroelectric generation, and will be one of the first sources of dependable base load power in the country. The deal is also one of the first African project financings for Bank of China and Industrial and Commercial Bank of China, as well as the first African power project to be supported by a political risk guarantee from China Export & Credit Insurance Corporation (Sinosure). Clifford Chance advised on the project and finance documentation as well as the PRG Policy.
The international Clifford Chance team was led by Global Head of the Energy & Resources Sector Group, Russell Wells. Russell was supported by Senior Associate Tom Jamieson and Associates Alexandra Blake, Gordon Stewart and Felicity Ward. In Paris, Partner Delphine Siino Courtin advised, with support from Senior Associate Corinne Duvnjak. In Beijing, Partner Jiahua Ni advised with support from Senior Associate Tiecheng Liu. Partner Tim Steadman and Director Dan Edwards advised on the construction documents, and Partner Paget Dare Bryan and Associate Daniel Deacon advised on the hedging documents.
Russell Wells said "This was a landmark financing that drew upon the strength of our international network and our market leading African practice for its success. Lawyers from a number of our offices, working across various practice areas, worked closely together to help the lenders negotiate a complex finance package and successfully close the transaction. It was an exciting project, with great potential benefits to the Zambian power sector, and it is also a significant milestone for Sinosure and the PRC banks as regards their investment in African power; we are delighted to have advised on this transaction."