Companhia Mozambique de Gasuduto SARL (CMG)

MIGA has issued additional coverage of $49.7 million to Standard Corporate and Merchant Bank of South Africa through its Corporate and Investment Banking Division. MIGA originally issued coverage in support of the Sasol Pipeline project in fiscal year 2003 and an additional increase in 2004. The risks covered are transfer restriction, expropriation, and war and civil disturbance for a period of 15 years. MIGA’s total coverage for the project is now $171.6 million.

The additional coverage of $49.7 million is for SCMB’s $27 million loan to the project enterprise, Companhia Mozambique de Gasuduto SARL (CMG) and a $13 million loan guarantee on behalf of CMG. The guaranteed loan will be used by the CMG to acquire an equity stake in the investment project. The project consists of an 865 km gas pipeline for the central processing facility in Mozambique to South Africa. The pipeline is owned and operated by the Republic of Mozambique Pipeline Investment Company (ROMPCO).

For project details please refer to www.miga.org/sasol1 and www.miga.org/sasol2.