Emmerson PLC (AIM:EML, OTC:EMSNF) has appointed a syndicate of leading international and Moroccan banks as initial mandated lead arrangers (MLA) to co-ordinate and fund dual-tranche debt financing facilities for the development of the Khemisset potash project.
The four MLAs are ING Bank, Banque Centrale Populaire, Bank of Africa and one further international European Bank.
Based on current discussions, the US$310mln dual-tranche project financing will be split between an export credit agency covered tranche led by UK Export Finance of US$230mln, and a dual currency commercial tranche of US$80 million.
"We are delighted to have received strong demand for the project financing from both lenders and ECAs, and our selection of MLAs with significant international and domestic expertise in natural resources project financing reflects the quality of the Khemisset project, Morocco as an investment jurisdiction, and market recognition of the critical importance of potash in the context of international food security,” said Graham Clarke, chief executive of Emmerson.
“The appointment of the MLAs represents an important milestone in the company's progress towards establishing Africa's first commercial potash mine for nearly 50 years."
Sender International Ltd and Colosseum Development (Morocco) are advising Emmerson on the debt financing of the project, working alongside Tamesis Partners LLP as the company's financial adviser for the financing of the project.