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Project Finance Loan Agreement Signed for the Mozambique Nacala Railway and Port Infrastructure Project

Nov. 28, 2017


On November 27, 2017, Mitsui & Co., Ltd., through a holding company jointly owned by Mitsui and Brazilian mining company Vale S.A. ("Vale") in a 50% equity split, entered into a project finance loan agreement for the Nacala railway and port infrastructure project, which spans across Mozambique and Malawi. With this agreement, the holding company will raise USD 2.73billion.

A number of international financial institutions are participating in the project financing, including the Japan Bank for International Cooperation (JBIC), Nippon Export and Investment Insurance (NEXI), African Development Bank (AfDB) and Export Credit Insurance of South Africa Limited (ECIC). Dialogues between these financial organizations and the government of both Mozambique and Malawi will build a strong relationships needed to secure stability for this project.

At the 6th Tokyo International Conference on African Development (TICAD VI), the promotion of economic structural reform through economic diversification and industrialization was raised by the Japanese Government as an area of particular focus. The Japanese Government intends to promote investment in high-quality infrastructure from financing in collaboration with Multilateral Development Banks (MDBs) such as the African Development Bank. Mitsui will continue to contribute to the growth and development of Mozambique, Malawi, and Africa by developing related businesses based on infrastructure projects which will become foundations of these areas.

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Nacala RailwayNacala Railway
At the project finance agreement signing ceremony held in Maputo, Mozambique on November 30. From the left: Mitsui Mineral & Metal Resources BU Chief Operating Officer Shinichiro Omachi, Vale S.A. Executive Officer and Global Business Support Alexandre Pereira, Mozambique’s Minister of Economy and Finance Adriano Afonso Maleiane, Mozambique’s Minister of Transport and Communications Carlos Alberto Fortes Mesquita, and Mozambique’s Minister of Mineral Resources and Energy, Letícia da Silva Klemens.At the project finance agreement signing ceremony held in Maputo, Mozambique on November 30. From the left: Mitsui Mineral & Metal Resources BU Chief Operating Officer Shinichiro Omachi, Vale S.A. Executive Officer and Global Business Support Alexandre Pereira, Mozambique’s Minister of Economy and Finance Adriano Afonso Maleiane, Mozambique’s Minister of Transport and Communications Carlos Alberto Fortes Mesquita, and Mozambique’s Minister of Mineral Resources and Energy, Letícia da Silva Klemens.