Financial Restructuring Of Tema Oil Refinery

The Ministry of Finance and Economic Planning (MoFEP) has noted with concern certain publications in the media in connection with government’s decision to restructure and recapitalize the Tema Oil Refinery (TOR) and would appreciate it if you could published this press release to set the records straight.

We wish to state that, by a letter dated 15th September, 2009, Ecobank Development Corporation and Ecobank Ghana Limited have been granted the exclusive mandate to assist MoFEP, Ministry of Energy (MOE) and TOR to undertake the said restructuring based on a scope of mandate as listed below:

a) Establishing and confirming the true state of TOR’s current debt;

b) Arrangement and syndication of US$300 million or the Ghana cedis equivalent to refinance the existing debt and the working capital requirements of TOR;

c) Arranging a US$300 million facility through the issuance of a medium term bond to strengthen TOR’s balance sheet;

d) Arranging additional funds to make up for any financing gaps identified in (a) above; and

e) Lead the restructuring and manage the eventual floatation of TOR on the Ghana Stock Exchange.

It is important to note that the mandate letter dated 15th September 2009 supersedes an earlier letter dated 7th September 2009 which has been quoted in some media.

The Ministry of Finance and Economic Planning is committed to ensuring the prudent management of the economy and will continue to do so in a transparent manner. END

ABDUL HAKIM AHMED MEDIA LIAISON OFFICER FOR: MINISTER