| Type |
Syndicated Loan supported by Political Risk Guarantee (PRG) |
| Borrower |
AES Kelanitissa (Private) Ltd. (AKL) |
| Cofinanced Amount |
$52 million |
| Tenor |
12 years |
| Guarantee coverage |
PRG covers breach of contract by the Government of Sri Lanka under the implementation and other agreements, including payment obligations relating to:
- expropriation and confiscation,
- change of law and events that make project agreements unenforceable,
- currency convertibility and transfer risk, and
- breach of fuel supply and power purchase agreements.
|
| Syndicate |
Fully underwritten by Australia and New Zealand Banking Group Limited |
| Project Financing |
| Debt: ($ million) |
| ADB direct loan |
26.0 |
|
| Cofinanced loan under PRG |
52.0 |
|
| Subtotal |
78.0 |
|
| Equity |
|
|
| AES Corporation |
24.0 |
|
| Hayleys Ltd. |
2.0 |
| Subtotal |
26.0 |
| Total |
104.0 |
|
| Use of Proceeds |
Construction and operation of a 163-megawatt diesel-based combined cycle power station. |
| Remarks |
ADB's PRG support is expected to enable the borrower to mobilize long-term (12 year) debt of $52 million from commercial cofinanciers at significantly better terms than it could achieve on its own credit. ADB's PRG for this transaction is counter-guaranteed by Sri Lanka. |
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