Ivory Coast secures loan to support refinery revamp

Jan. 14, 2019
Societe Ivoirienne de Raffinage has secured a €577-million debt financing to enable modernization work on its 76,300-b/d refinery in Vridi district of Abidjan, Ivory Coast. The purpose of the long-term debt financing funding is to repay historical obligations on crude supply, provide a long-tenured facility, and reduce the interest rate of SIR's stock of debt, said Africa Finance Corp., which acted as sole mandated lead arranger and supplied €192 million as part of the transaction.

Societe Ivoirienne de Raffinage (SIR) has secured a €577-million debt financing to enable modernization work on its 76,300-b/d refinery in Vridi district of Abidjan, Ivory Coast.

The purpose of the long-term debt financing funding is to repay historical obligations on crude supply, provide a long-tenured facility, and reduce the interest rate of SIR's stock of debt, said Africa Finance Corp. (AFC), which acted as sole mandated lead arranger and supplied €192 million as part of the transaction.

The long-term funding solution to refinance historical accrued debts will free up resources to enable SIR to make much needed investments in its current operations and upgrade its refinery and production processes to align with current environmental emissions standards and expand its business, thereby contributing to job creation, AFC said.

Alongside AFC, participating banks include Deutsche Bank, ICBC Standard Bank, United Bank for Africa, NSIA Bank, and Bridge Bank.

“The management of SIR is pleased with the successful outcome of this transaction which has enabled the conclusion of a greatly needed capital [program to] enhance the operations of SIR, an industrial company which has served [Ivory Coast] and the [West African subregion] for many years and indeed for years to come,” said Thomas Camara, SIR’s director general.

Neither SIR nor AFC have disclosed either the timeframe for nor details on the proposed works to be undertaken as part of the proposed modernization efforts.

Contact Robert Brelsford at [email protected].