Track Record > Case Studies
Case study:
Mauritanian iron ore project
The largest iron ore financing globally in 2009 and in the history of Mauritania. One of the largest ever iron ore financings in Western Africa. Trade Finance Deal of the year 2010.
Project description
- The project involves the expansion of the operations of the Société Nationale Industrielle et Minière (”SNIM”) at its Guelb el Rhein iron ore mine located 25 km North-East of Zouérate in Northern Mauritania, and related processing and transportation activities
- SNIM is 78.35% owned by the Government of Mauritania
- Total project costs included:
- Expansion of the Guelb el Rhein iron ore mine located Guelb El Rhein site
- Construction of a new iron ore beneficiation plant for the production of an additional 4 mt of high quality iron ore concentrates per year
- Construction of a new port for all of SNIM’s operations
HCF’s role
- HCF acted as sole financial adviser to SNIM on this transaction
- Key roles included:
- Development of financing strategy and plan
- Structuring of the financing
- Due diligence management and coordination
- Term sheet negotiation
- HCF also held several other advisory roles with SNIM
Mine financing
- Signed in December 2009
- Shariah-compliant corporate financing of USD 712 million
- The financing was highly complex and involved a consortium of eight leading financial institutions including commercial banks and multinational institutions
- African Development Bank
- Islamic Development Bank
- European Investment Bank
- French Development Agency
- BHF-Bank
- BNP Paribas
- KfW IPEX-Bank
- Société Générale
- The financing was achieved within a very difficult macro-economic environment and during unprecedented turmoil in the global finance markets
Closed mandate