GuarantCo has provided a XOF 14.2 billion (USD 23.8 million) Liquidity Extension Guarantee (LEG) to enable local commercial banks in Togo, including Orabank, to provide a 14 year tenor loan to KEP, a special purpose vehicle set up by Eranove to finance the construction of a 65MW combined cycle thermal plant and related infrastructure in the port area of Lomé, the capital of Togo.

This transaction is GuarantCo’s first guarantee in Togo and the first LEG to extend the maturity of a transaction with a 7-year tenor for local commercial banks to 14 years. It is also the first infrastructure transaction to be financed mainly in local currency which, in combination with the extended tenor enabled by the LEG, helps to provide a competitive electricity tariff for the local population.

Togo, one of the lowest income countries in the world, currently has a generation capacity of 235MW. The government is planning to significantly upscale its domestic generation capacity with the support of private sector investors to address the major power deficit being experienced by the country.

By providing electricity to nearly 20 percent (1.5 million people) of the population in Togo, the Kékéli Efficient Power project will make an important contribution to support the Government of Togo to meet their targets to rapidly scale-up the country’s energy production capacity.

Through this transaction, GuarantCo also aims to extend its partnerships with banks and institutional investors in Togo and finance other infrastructure transactions from which the local people and the economy will benefit whilst supporting Togo’s power generation deficit so that the country can become more self-sufficient.