Ethiopia, Danske Bank A/S Sign €117m Financing Agreement (June 22, 2020)

A loan agreement amounting €117.3 million has been signed between Ethiopia and the Danske Bank A/S for the 100MW Assela wind farm project.

The agreement was sign by Ahmed Shide, Ethiopia’s Minister of Finance and Mr. Jelsper B. Petterson and Olaf S. Mark schet, Director and Associate Director of Danske Bank A/S, respectively.

The total contracting amount of the project is €146 million, of which €117 million loan will be covered by the Danske Bank A/S, according to a statement issued by the Ministry of Finance.

The Danida Business Fund (DBF), administered by the Investment Fund for Development Countries on behalf of the Government of Denmark, committed to contribute €28.70 million cash grant for the project.

In addition, DBF will subsidies the interest rate, Bank Margin, and EKF premium expenses of amounting €66 million euro. The DBF total support in terms of the grant, including the cash grant, is €94.7 million.

The financial support for the project is part of the Danish development assistance to Ethiopia, the statement added.

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