| Thu 21 Aug 2014, 15:43 | | GROUP FIVE LIMITED - Significant Contract Award |
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GRF 201408210045A
Significant Contract Award
GROUP FIVE LIMITED
(Incorporated in the Republic of South Africa)
(Registration number 1969/000032/06)
Share code: GRF ISIN: ZAE 000027405
("Group Five" or "the company" or "the group")
SIGNIFICANT CONTRACT AWARD
Subsequent to the audited group results, for the year ended 30 June 2014, which
were released on SENS on 13th August 2014 and in which shareholders were
advised that the group is in firm negotiation for a large over-border power contract
which will significantly increase its order book and geographic exposure,
shareholders are advised that:
- the project has progressed further as the group has now been awarded the
R4 billion engineer, procure and construct (EPC) contract by Ghanaian group
Cenpower Generation Company Limited (Cenpower) for the design and build
of the 350 megawatt (MW) gas- and oil-fired combined cycle power plant in
the municipality of Kpone within the Tema industrial zone in Ghana (“the
Kpone IPP”);
- the project is subject to certain conditions precedent and must now proceed
to commercial and financial close, which includes equity and debt closures,
which will take place over the coming weeks between Cenpower and the
providers of the debt funding; and
- only once both commercial and financial close has been reached will the
group receive a Notice-to-Proceed instruction which will trigger the
commencement of contract execution.
Rand Merchant Bank, a division of FirstRand Bank Limited, is the coordinating
mandated lead arranger for the full commercial debt package, with support from the
Export Credit Insurance Corporation of South Africa.
Global technology leaders, including General Electric and Siemens, will supply the
power generation equipment which approximates 50% of the contract value.
The contract duration is three years from award to commercial operation.
Group Five has successfully completed more than ten EPC power contracts to the
value of R6 billion over the last seven years. The Kpone IPP is similar to a number of
these completed EPC power contracts.
The group has successfully operated in Ghana for the last 15 years.
The group will update stakeholders once both commercial and financial close has
been reached, as these closures are mandatory before execution on the contract is
required or can commence.
Johannesburg
21 August 2014
Investment Bank and Sponsor
Nedbank Capital
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