CRDB Bank Secures TZS 790 Billion investment in Mahenge Graphite Mining Project

CRDB Bank PLC is proud to announce the successful execution of a significant facility agreement by a consortium of the African leading financial Institutions to support the Tanzanian graphite mining project – the Mahenge Graphite Project. (Faru Graphite Corporation)

This milestone marks a key step forward in the development of this critical project and solidify the availability required of a debt funding of $153 million and further $26 million in the form of a bank guarantee to support the rehabilitation bond for the mine closure plan hence making a total of $179 million (TZS 790 billion) for the entire project.

CRDB Bank will play a central role in this agreement as Joint Mandated Arranger, Facility Agent, Onshore Account Bank, and Onshore Security Agent by providing a total commitment amounting to USD $66 million which includes USD $20 million as cost overrun facility, USD $20 million as working capital and USD $26 million as rehabilitation guarantee.

"At CRDB Bank, we are deeply committed to supporting strategic projects that drive sustainable development and create lasting impact. Our involvement in the Mahenge Graphite Project demonstrates our unwavering belief in the potential of Tanzania and Africa at large. By working together with leading institutions, we are not only funding a critical supply chain for battery minerals but also empowering local communities with jobs, infrastructure, and business opportunities. This project is a testament to what can be achieved when we invest in Africa's future," says Abdulmajid Nsekela, Group CEO and Managing Director of CRDB Bank.

CRDB Bank's involvement in this consortium is a testament to its robust ability to facilitate large-scale projects that enhance the local content framework and capitalize on its extensive regional and international financial networks. The consortium also includes the Development Bank of Southern Africa (DBSA) with a commitment of $59.6 million and the Industrial Development Corporation (IDC) with a commitment of $53.4 million

Ultimately, for the project to reach a production stage, Mr. Nsekela clarifies that it will also require funding in the form of Equity and Off-take Prepayment (POSCO), the combined financial support of $179 million in debt facilities and rehabilitation guarantee is very instrumental in derisking the project towards development and attest the strong confidence and commitment of the participating banks to supporting strategic projects that drive sustainable development and economic growth.

"We are extremely pleased to have concluded our debt financing process for Mahenge Graphite Project and to be signing the Facilities Agreement with a group of such high calibre lenders. Today's announcement represents a major de-risking milestone for Black Rock towards funding the development of the Mahenge Graphite Project. We look forward to working with DBSA, IDC, and CRDB to develop Mahenge for the benefit of all our stakeholders," says John de Vries, Black Rock's CEO and Faru Graphite Corporation's majority shareholder.

Faru Graphite Project stand to be one of the exciting projects to fund at this era. Promising for a significant economic and environmental benefits to the country and to the world at large by providing a potential supply of batteries minerals (Natural Graphite) which play a crucial role in reducing carbon footprints through several key applications and mechanisms.

The project is poised to bring massive multiplier socio-economic incentives such creating over 500 directly and indirectly employment opportunities, accessibility of power through the construction of 220Kv powerline connected from Ifakara substation to supply to the Mahenge Graphite Project which includes the broader regional electrification of local villages within the Mahenge and Ulanga districts.

The project also brings a substantial value chain opportunities to suppliers, service providers including and not limited to local mining construction companies, logistics companies, importers, traders and retailers in Mahenge District in Morogoro Region.