Copperbelt Energy Corp. anounced that they plan to raise up to US$150 million through loans to refinance existing debt and for its upcoming expansion plans. Copperbelt Energy Corp. supplies power in Zambia to Vedanta Resources Plc and Glencore Xstrata Plc.
Dutch and German development-finance institutions will be financing the Lusaka-based company as much as US$100 million. The financing is expected to be completed within three months. Copperbelt Energy Corp. development managing director, Michael Tarney said that these deals will most likely have 10-year maturities.
"We still think that is the safest form of lending at the moment. The terms you get from the development-finance institutions are still better than bonds." Mr. Tarney said.
Copperbelt Energy will also try to raise around US$50 million in a rights offer this year as it attempts to develop into the largest privately owned power enterprise in sub-Saharan Africa. According to the World Bank, only one in four people have access to proper electricity services.
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