JOHANNESBURG (miningweekly.com) – Aim-listed Kefi Minerals is in communication with all Ethiopian government offices dealing with its Tulu Kapi gold project to maintain progress on various administrative tasks as precursers to the development of the project.
Since the appointment of new Ethiopian Prime Minister Dr Abiy Ahmed on April 2, there have been various appointments of new Ministers and, as of May 11, new State Ministers and Deputy Ministers.
This follows the resignation of the former Prime Minister to allow a transition to a new leadership.
The government is also Kefi's partner in the Tulu Kapi project company, Tulu Kapi Gold Mine Share Company Limited (TKGM), and its representatives on the TKGM board work closely with Kefi and other members of the project consortium, Kefi said on Tuesday.
According to the International Monetary Fund, Ethiopia is expected to be the highest growth country in sub-Saharan Africa again this year, with mining listed as a priority sector for the country.
It is expected that the Tula Kapi project will play an important role in the country's development.
Meanwhile, Kefi has been advised that the international bond markets favourably view the Ethiopian government's smooth transition to its new leadership.
Against this backdrop, market soundings currently indicate that the Kefi infrastructure bond will have an about 7% coupon based on the bond being issued at par, subject to the completion of formal due diligence and market conditions at the time of the bond issue.
The bond will be a senior secured sinking fund bond issued by Kefi's Luxembourg special purpose vehicle and will be listed in Luxembourg.
Over the past year, Kefi has been developing its project funding plans with its consortium, targeting institutional investors through the specialist bond-arranger formally mandated on May 8.