Deutsche Bank announces the closing of two new 203 million euro social loans with the Republic of Ghana. The financing agreements have a 95 percent insurance cover by the African Trade Insurance agency (“ATI”) and are set to fund four health and two transportation projects in Ghana.
The first transaction, a 55 million euro financing package, relates to the construction of two new Trauma hospitals in Obuasi and Anyinam districts, a new Accident and Emergency centre at Enyiresi Hospital and the rehabilitation of Obuasi’s current outdated Health Center. Once completed, the four projects will provide more than 200 hospital beds and new, state of the art equipment will significantly improve healthcare services in each region.
The second transaction, a 148 million euro financing package, will fund the reconstruction of two major transportation routes, Tarkwa-Agona-Nkwanta and Bechem-Akumadan.
Rehabilitation of the Tarkwa-Agona-Nkwanta road will significantly increase the country’s trade given its connection to the Takoradi Port. It is also an important part of the link to neighbouring countries and fellow member states of the Economic Community of West African States (ECOWAS). Furthermore, road improvements will reduce vehicle operating costs and dust pollution in surrounding settlements and will cut the number of road accidents.
Upgrading the Bechem-Akumadan road (40km) will bring economic benefits to communities in the surrounding areas, which mainly depend on agricultural production for their livelihoods.
Commenting on the transactions, Maryam Khosrowshahi, Chairperson of Supranational, Sovereign and Agencies (SSA) Origination and Co-Head Africa Coverage Deutsche Bank said:
“We are extremely pleased to be able to support the Republic of Ghana on critical infrastructure and health development investment initiatives through this financing and to have structured the country’s first ATI-backed transaction. Infrastructure investment and development will remain a critical engine to support sustainable growth and employment. As such, we are proud to deliver creative financing solutions to help Ghana and more broadly our other key clients on the continent to achieve their long-term objectives.”
Benjamin Mugisha, Chief Underwriting Officer at African Trade Insurance agency, said:
“Investment in infrastructure is a necessary requirement for growth and a long-term asset in sustainable growth. Africa must invest in infrastructure development not only for sustainable economic development but also to create jobs that have been largely affected by the COVID-19 pandemic. We are proud that ATI’s insurance will contribute to Ghana’s expansion of road and health infrastructure. Our ultimate objective is to achieve Africa’s total inclusion in the global economy.”
Since 2011, Deutsche Bank has arranged over 3 billion euro of financing across over 20 transactions to support critical infrastructure development in Ghana most of which are social loans supported by Export Credit Agencies (ECAs). In February, Deutsche Bank announced the closure of two financings with the Republic of Ghana for the rehabilitation of the Keta Water Treatment Plant and the construction of the New Takoradi Market. Last week, the bank announced signing an approx. 600 million euro agreement to finance the construction of a 100km stretch of Ghana’s Western Railway Line, running from Takoradi Port to Huni Valley.