Stanbic Bank to finance US$3 billion for Mchuchuma Iron Ore & Liganga
Coal Mining Projects in Tanzania.
Dar es Salaam:
Stanbic Bank Tanzania is pleased to announce the successful completion
of a senior secured syndicated financing worth US$3 billion (about 4.9
trillion Tsh) for Mchuchuma Iron Ore and Liganga Coal mining project
in Ludewa District, Tanzania. The financing is a joint effort between
Stanbic Bank Tanzania and International Commercial Bank of China
(ICBC), which is the largest bank in the world. Stanbic Tanzania and
ICBC have joined forces so as to synergise both banks’ competitive
advantage, providing necessary expertise in investments of this
magnitude. ICBC also holds 20% shares of Standard Bank, which wholly
owns Stanbic Tanzania. The funds have been secured for Tanzania China
International Mineral Resources Ltd (TCMR), 80% shares of which are
owned by China’s Sichuan Hongda and 20% ownership by National
Development Corporation (NDC).
Stanbic Bank, ICBC and TCMR Tanzania today signed an agreement to
provide financing worth $3 billion to develop the Mchuchuma Iron Ore
and Liganga Coal mining projects. The two projects are the single
largest investment venture in East Africa. Implementation of the
Mchuchuma project, among other things, aims at improving power output
in the country.