The 10-year, US$263 million, Islamic-compliant senior debt facility was arranged by Standard Chartered Bank, Dubai Islamic Bank, and WestLB AG. This debt is backed by a US$427 million, 99 percent political risk insurance policy from MIGA. The MIGA guarantee is greater than the tranche that it covers because it includes a termination and compensation package from the Djibouti government. The AfDB provided senior loans amounting to US$80 million.
Financing type Source of funding | Amount | Percentage |
SENIOR DEBT |
| 52.7% |
Dubai Islamic Bank | US$263 million |
|
Standard Chartered Bank |
|
|
WestLB AG |
|
|
MULTILATERAL DEBT |
| 20.6% |
African Development Bank | US$80million |
|
US$23 million |
| |
SHAREHOLDERS' EQUITY |
| 26.7% |
DP World Djibouti | US$44 million |
|
Port Autonome de Djibouti | US$89 million |
|
TOTAL | US$499 million | 100.0% |
The MIGA guarantee was obtained in order to cover four key risks: transfer restriction, expropriation, war and civil disturbance, and breach of contract. MIGA's participation in the transaction helped mitigate perceived political risks for the banks and enabled the project sponsors to raise medium-term, cross-border project financing.