Finnvera grants a buyer credit guarantee for Valmet’s deliveries to Ghana
Valmet Technologies Oy delivers a tissue machine to a Ghanaian company Triton OCH Industries Ghana Limited for a tissue paper plant that is under construction. The tissue demand in Ghana has grown strongly in the recent years and the growth has been especially strong since the covid pandemic. Finnvera has granted a buyer credit guarantee for a 6,75 million euros loan. Participating in the financing of the project supports Finland’s Africa strategy. The tissue machine’s yearly production capacity is planned to be 23 000 tons. The plant will be placed in a newly built industrial area about 65 kilometers from Ghana’s capital Accra. The state of Ghana has supported the project by investing on the infrastructure, like electricity and water systems and the roads surrounding the site.
Signing date of the Finnvera Guarantee Agreement: 14/15 August 2024
Name of the Guarantee Holder: Landesbank Baden-Württemberg
Name of the Exporter: Valmet Technologies Oy
Name of the Lender: Landesbank Baden-Württemberg
Name of the Buyer: Triton Global FZE (UAE)
Name of the Borrower: Triton OCH Industries Ghana Ltd
(Name of the Guarantor): Triton International Pvt Ltd (India), Triton Global FZE (UAE) and Jay Kay Industries and Investment Limited (Ghana).
Export transaction/Goods: equipment for tissue machine, stock preparation, rewinder and advisory services in relation to a paper mill operated whithin the Republic of Ghana.
Country of Export transaction/project: Ghana
Credit amount EUR: 6 731 690
Credit period: 7 years starting from the earlier of i) 6 months from the Starting Point of Credit or ii) 16 December 2024.
Percentage of cover: 90% commercial cover and 100% political cover.
ES-risk classification: B
International standards applied in benchmarking: Relevant IFC Performance Standards (IFC Environmental and Social Responsibility Standards) and EHS Guidelines.
Contact point: [email protected]
Environmental and social impact information: Finnvera categorizes the Project as a Risk Category B project as per the OECD Common Approaches based on moderate negative environmental and social impacts, that are manageable, local and largely reversible. Carbon dioxide emissions, the coal used as fuel in the boiler, are the biggest identified environmental and social impacts in this project, but there will be a phase out plan to replace the fossil fuel with bio based.
Date of publication: 19 August 2024
