When?, page-146

Given the WKT experience?

1. seeking funding from Tanzania banks would be more difficult, given the higher capex. The debt deal WKT got is in many ways testing the waters for a Tanzania bank. There are already insurance requirements before the loan approval, then there's also the SBLC allegedly for the full loan amount (which is unusual, like a double insurance), plus the companion equity. Imagine this for a $20m USD loan that needed 12M companion equity on what I consider a much less riskier project both size/complexity. If EGR is still 300m market cap it is a different discussion to now.

2. seeking foreign funding for a Tanzanian project has its own difficulties. There are more regulatory hurdles to overcome (government approvals, structure of the loan) and then there's the corresponding risk profile of the country plus project risk. General outlook for world economy not looking great and the flow on effect of fiscal tightening will impact many bank's ability to offer cheap credit.

How quickly sentiments change. Before WKT suspension, the CP with CRDB seems overly onerous, but 1 month later, the terms now in retrospect is much more favorable. With fixed price contracts executed, there are bookends to the project costings. For unfunded projects, not only the financer will need to assess the technical details, there's now also the pessimistic economic outlook overshadowing any new discussions.