Ashurst advises Deutsche Bank

Ashurst advised Deutsche Bank on the successful USD172 million financing to the Republic of Ghana for the first phase renovation of the Kumasi Market, which is the largest open-air market in West Africa (the 'project'). The project aims to relieve the congestion at the market, which sees 600,000 visitors a day, install proper infrastructure, increase security, provide better health and working conditions for the sellers and importantly ensure a flow of income to the Kumasi Metropolitan Assembly.

Ashurst acted as international legal counsel to Deutsche Bank who were the sole MLA, lender and agent for the financing which was split into two tranches both of which were fully underwritten by Deutsche Bank.

The first tranche consisted of a USD135 million nine year amortising facility guaranteed by the Brazilian ECA, Secretaria de Assuntos Internacionais (SAIN), part of the Brazilian Ministry of Finance, to finance the export of Brazilian goods and services by Brazilian construction company, Contractra Engenharia Ltda to the Project. The second tranche was a USD37 million eight year commercial loan facility provided by Deutsche Bank to the Ghanaian Ministry of Finance to fund the down payment under the export contract.  The deal was enhanced by the provision of a 20 per cent cash collateralisation structure funded by the Ghanaian Ministry of Finance.

Brazilian law support was provided by Pinheiro Neto and Oxford & Beaumont advised on the Ghanaian law aspects.

This landmark transaction is of great importance to the region as it is the first transaction completed by a commercial bank using the SAIN guarantee for civil works. This new structure is being embraced by Brazilian exporters and also opens up Brazilian guarantee programs to commercial banks for the first time. 

The Ashurst team comprised lawyers in Dubai and New York and was led by Dubai-based partner and Middle East Head of Finance David Charlier, assisted by counsel Shri Maski and associate Grant Batten.

David Charlier commented, "We are delighted to have supported Deutsche Bank on this multi-jurisdictional deal which sees the first SAIN-covered facility by a commercial bank for civil works, which in turn will be supporting the integral development of vital social infrastructure in Ghana."