GTR Best Deal Award 2022

UKEF extends biggest ever facility in West Africa for NMS Hospitals Project on Cote d’Ivoire

  • Deal name: Government of Côte d’Ivoire

  • Borrower: Government of Côte d’Ivoire

  • Amount: €241mn (UKEF loan) & €52mn (commercial loan)

  • MLA: MUFG (UKEF buyer credit tranche)

  • Lead arranger: MUFG (commercial loan)

  • Lenders: Aegon, Caixa Bank, DZ Bank, LFC, Nedbank, Oddo BHF, Rand Merchant Bank

  • ECA: UKEF

  • Advisor: GKB Ventures as ECA advisor to the Republic of Côte D’Ivoire

  • Law firms: Ashurst, KSK Law Firm

  • Pricing: February 2021 OECD Euro CIRR rate for the direct lending tranche – 0.32%

  • Tenor: 13.5 years (UKEF portion)

  • Date signed: February 2021

Amidst a flurry of export credit agency-backed hospital projects across West Africa last year, this UK Export Finance (UKEF)-supported deal stood out as particularly noteworthy due to its size and complexity.

The agreement saw UKEF provide its biggest ever financing facility in West Africa, helping UK-based developer NMS Infrastructure secure a contract to build six hospitals in Côte d’Ivoire.

The export credit agency is providing a €241mn facility, which is comprised of separate direct lending and buyer credit tranches.

MUFG Bank served as mandated lead arranger on the buyer credit portion, which was also supported by Aegon, Caixa Bank, DZ Bank and Oddo BHF.

The deal also included a €52mn commercial loan, which NMS says was delinked from the UKEF-backed facility to allow the project to start nine months prior to the British government confirming its support.

MUFG act as lead arranger on the commercial loan, with Rand Merchant Bank, Nedbank and London Forfaiting Company also participating.

The agreement further included an interim bridging loan, arranged by Côte d’Ivoire’s government ahead of the UKEF and commercial facilities.

The project involves the design, construction and kitting out of six hospitals in Bouaké, Boundiali, Katiola, Kouto, Minignan and Ouangolodougou, towns mainly located in the country’s north. Training and technical support after the projects are completed is also included in the financing, and the hospitals will use equipment sourced from the UK.

GKB Ventures, which ran the tender process for the financing, says the UKEF direct loan, structured to amortise after the buyer credit tranche, was essential for ensuring the project could be fully funded on affordable terms during what was an “extremely volatile” funding market.

“Being able to tap the OECD fixed rate at the lowest end of the curve was particularly important and is one of the lowest rates seen since the introduction of the OECD Commercial Interest Reference Rates in 1993,” says Ed Harkins, GKB Ventures managing director.

Ben Lyons