21
Citi Perspectives
| Q1/Q2 2015
South Korean Export Credit
Agency, as well as a $427.5 million
commercial tranche.
In Africa, ECAs play an important
role in the energy sector. Most
African sovereigns cannot borrow
at the tenors necessary for energy
infrastructure investment: an ECA
guarantee is therefore necessary.
Citi acted as advisor and co-arranger
for a 15-year, $101.3 million term
facility for the Government of Ghana
that was 100%-guaranteed by the
Export Credit Insurance Corporation
of South Africa. The deal, the first of
its type in Ghana, financed electricity
transmission lines for 532 towns
and villages.
For emerging market countries, whether they are oil importers
or exporters, the fall in energy prices — reinforced by an expected
rise in interest rates by the Federal Reserve in the coming
months — has the potential to increase market volatility.
Energy investment in the region
has recently been boosted by
Power Africa, a $7 billion
partnership between the U.S.
government ($5 billion from Ex-Im
Bank), several African governments,
and other public and private
sector entities that aims to double
access to electricity. Citi, which
last August pledged to source $2.5
billion in incremental support for
the initiative, will also leverage
its renewable energy financing
expertise to assist the program.
