SETRAG is the concessionaire of the Transgabonais railway, the sole railway in Gabon, under a 30-year concession until 2035. It is a 99.98% subsidiary of the “Compagnie Minière de l’Ogooué” (“COMILOG” or the “Sponsor”). The Transgabonais has been in operation since the mid-1980s.

COMILOG is the second largest producer of high-grade manganese in the world with c.8% of global production. It operates the Moanda manganese mine in the Haut-Ogooué province of Gabon, as well as the Transgabonais railway (via SETRAG) and the Owendo mineral port. Its other business lines include chemicals, alloys and recycling. COMILOG is 63.7% owned by Eramet (a French mining and metallurgical company), 28.9% by the Government of Gabon, 7.0% by Carlo Tassara France and 0.3% by other investors.

The total project cost is estimated at up to EUR190.3 million including EUR160.3 million of SETRAG-funded works and EUR30.0 million of works funded by the Government of Gabon. The proposed IFC investment comprises: i) an A Loan of up to EUR34.0 million and ii) one or more EUR interest rate swaps with a total loan-equivalent exposure (LEQ) of up to US$2.5 million.

IFC will also arrange the balance of the senior debt financing required, including: i) a Trust Loan under IFC’s Managed Co-Lending Portfolio Program (“MCPP”) of up to EUR22.5 million and ii) a senior parallel loan from PROPARCO of up to EUR44.7 million.

The Project is located in Gabon. It spans 648 kilometers from the port of Owendo, 10 kilometers south of the capital city, Libreville, to Franceville in the province of Haut-Ogooué. Aside from the first few kilometers in the outskirts of Libreville, it runs though sparsely populated rural areas.