COPPERBELT ENERGY CORPORATION
Status: Approved investmentWhy disclosure?
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In case of questions, please contact us at disclosure@fmo.nl
Disclaimer
The information as disclosed is indicative and provided on an "as-is/as available" basis for general informational purposes only and should not be construed as financial, legal or investment advice, nor as a commitment or an offer to arrange or provide any financing. The final decision to provide financing is subject to the terms and conditions of FMO in its sole and absolute discretion. When providing links to other sites, FMO bears no responsibility for the accuracy, legality or content of the external site or for that of subsequent links. The information on proposed investment for high-risk investments is made available in the language relevant to the country or region where the bulk of operations take place. Translations of any information into languages other than English are intended as a convenience for local stakeholders. In case of any discrepancy, the information provided in English will prevail.
Who is our customer
Copperbelt Energy Corporation Plc (CEC) commenced operations in 1954 as the Rhodesia Congo Border Power Corporation Limited, supplying electricity to the mines in then Northern Rhodesia (now Zambia) and the Belgian Congo (now DRC). The company was renamed Copperbelt Power Company following Zambia's independence in 1964, and later became Power Division of Zambia Consolidated Copper Mines Limited (ZCCM) in 1982 when the Government of Zambia nationalized the mining industry as part of economic reforms. In 1997, ZCCM was privatized and the Power Division was sold to a consortium comprising Cinergy Global Power (US) and National Grid (UK) and was renamed Copperbelt Energy Corporation Plc. Subsequently, a consortium of Zambians bought the company from Cinergy and National Grid in 2006. CEC Plc was listed on the Lusaka Stock Exchange in 2008. The core business of CEC Plc continues to be energy generation, transmission and distribution, primarily in the Copperbelt region in North-West Zambia. Making use of its Transmissionline network CEC is also active as a telecom services provider through two JVs. Its core activities - transmission and distribution - represent the largest income source for CEC Plc (>95%) and will continue to do so in the future. In 2013, CEC established in Mauritius an investments holding company, CECA Investments Limited, with the objective of owning and operating energy and infrastructure projects in Sub-Saharan Africa.
What is our funding objective?
The US$120 mln corporate finance facility was arranged by Standard Bank, with US$150 mln 5-year funding rasied from a number of commercial banks, and US$70 mln 12-year funding raised from FMO and fellow development finance institutions DEG and Proparco. The purpose of the facility is to fund the acquisition of power assets in Nigeria, following the partial privatization of the energy sector in that country. In addition, the facility will be used to finance the development by CEC of transmission and generation projects in Zambia.
Why do we fund this investment?
FMO's focus in this project is financially supporting the development of private sector energy companies in Africa, such as CEC, which are committed to adhering to the highest environmental, social and corporate governance standards.
- Region
- Africa
- Country
- Zambia
- Sector
- Energy
- Effective date
- 5/28/2014
- Total FMO financing
- USD 25.00 MLN
- Funding
- FMO NV
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Risk categorization on environmental and social impacts, A = high risk, B+ = medium high risk, B = medium risk, C = low risk
Environmental & Social Category
(A, B+, B or C) - A