Ecobank syndicates $228m credit for Olam Gabon unit

Ecobank Capital, the investment banking arm of Ecobank, on July 25, 2012, announced it has successfully raised, in FCFA and Euro equivalent, the sum of $228 million required to close the first tranche of a loan syndication on behalf of Olam Palm Gabon (OPG), a joint venture between Olam International and the Gabon government.

In a statement, Ecobank said the facility comprises a $20 million 10-year FCFA tranche and a $208 million seven-year Euro and FCFA tranche, extendable to 12 years.

According to the syndicate arranger, the proceeds will be used to finance the establishment of a 50,000-hectare palm oil plantation and crushing mill in Gabon and once at full capacity, the project will make Gabon one of West Africa’s leading palm oil producers, potentially overtaking Côte d’Ivoire as the region’s largest palm oil exporter.

Ecobank Capital acted as the mandated lead arranger, working with two co-arranging banks, namely, Afreximbank and BGFI Bank Gabon. The Central African Development Bank participated as a lender. The closing ceremony was held in Paris on the July 12.

The second tranche of the syndicated loan is likely to be placed with international development finance institutions at a later date, Ecobank said.

By Ekow Quandzie