CRDB SECURES 790 BILLION INVESTMENT FOR MAHENGE GRAPHITE PROJECT

CRDB Bank Group Managing Director & Chief Executive Officer, Abdulmajid Nsekela (third right), alongside leaders from companies involved in the Mahenge Graphite Project during the signing ceremony for the project's financing agreement held in South Africa over the weekend. The project led by Faru Graphite Corporation has secured funding for its first phase. CRDB Bank facilitated this financing in collaboration with Development Bank of South Africa (DBSA) and Industrial Development Corporation (IDC) of South Africa. 

• The Bank will play four roles: joint mandated lead arranger, facility agent, onshore account bank, and onshore security agent.

• The project is poised to bring massive multiplier socio-economic incentives to Mahenge and Ulanga areas and to the nation at large.

Johannesburg, South Africa. 13th September 2024: 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.

About CRDB Bank Plc

CRDB Bank Plc is one of the leading commercial banks in East Africa, serving diverse sectors and clients across Tanzania, Burundi, and the Democratic Republic of Congo.

Rated "B1, stable" by Moody's, CRDB Bank holds one of the strongest ratings for banks in East Africa and over 3 decades, the bank has significantly contributed to economic transformation in its markets. In 2019, CRDB was accredited by the UN Green Climate Fund, and in 2023, it issued a green bond to support environmentally friendly projects.

With over 5 million customers, CRDB Bank operates 250+ branches, 25,000 agents, and 650+ ATMs. Its quest to promote financial inclusion resulted to the establishment of CRDB Insurance and CRDB Bank Foundation in 2023, wholly owned subsidiaries that further contribute to economic growth and complement the banking business.

About The Development Bank of Southern Africa (DBSA)

The Development Bank of Southern Africa is one of the leading African Development Finance Institutions, wholly owned by the Government of South Africa. The DBSA has a mandate to accelerate sustainable socio-economic development in South Africa, the Southern African Development Community (SADC) and the wider Sub-Saharan Africa by driving financial and non-financial investments in the social and economic infrastructure sectors.

About The Industrial Development Corporation (IDC)

The Industrial Development Corporation of South Africa is a state-owned institution that provides financial support to promote economic growth and development in South Africa. IDC funds viable businesses to enhance industrial capacity and contribute to the economic growth of South Africa and the entire continent. IDC emphasizes on labour-intensive industrialization, whether it is created directly through its funding of companies or by enabling downstream activities. IDC supports businesses to drive key development outcomes that ultimately lead to equitable economic growth, creating and sustaining jobs.

About the Mahenge Graphite Project

The Mahenge Graphite (Faru Graphite Corporation) is a significant mining venture Between the ASX listed BLACK ROCK MINING (84%) and Government of Tanzania (16%) developed on the world-class multigenerational and one of the largest JORC-compliant flake graphite resources located in Mahenge Tanzania, with 213m tonnes @ 7.8% TGC, and a reserve of 70m tonnes @ 8.5% TGC. This project aims to develop and exploit high-quality graphite deposits, a critical mineral with substantial applications in battery technology, energy storage, and various industrial processes.

For More information, please contact:

TullyEsther Mwambapa
Director of Corporate Affairs
Mobile: +255 769 200 600
Email: TullyEsther.Mwambapa@crdbbank.co.tz