Takoradi Green Campus - A big and bold solution!

ZURICH - March 15, 2017 - PRLog -- Accra / Port-Louis, today, Takoradi Green Campus Limited (TGC), a Ghanaian based student accommodation provider and Noble Capital Limited, a financial intermediary, authorised and regulated by the Financial Services Commission, Mauritius, announce they have signed a letter of engagement.

The letter sets out the terms on which both parties agree that Noble Capital is engaged to assist TGC, the Issuer, on an exclusive basis, in raising up to 16m USD of capital, in the form of an Ascending Social Impact Loan (ASIL), with or without up to 3m USD of equity participation in the Issuer. The funds will be used to construct three, four storey apartment blocks on the Takoradi Technical Universities new satellite campus in Akatakyi, a suburb of Takoradi, Ghana.

The ASIL is a dynamic, 13 year payback, non-recourse loan structure whose interest rate ascends each year by 10% of the initial starting coupon rate of 5%. Guy van der Walt, CEO of Tiguri GmbH, TGC Project Team member and structurer of the ASIL explained that unlike conventional non-recourse loans the ASIL pays the principal sum down in equal instalments each year. This does appear good for ASIL investors because the principal capital is not tied up for the full term and it is fair to say that a dollar today is worth more than a dollar tomorrow.

Tom Guest, Director of Noble Capital commented "the ASIL is also good for the Issuer because there is less financial stress in the earlier years of operation. This gives the project more appeal when attracting debt because the company is in a better financial positon to make its repayments and pays more in later years when the engine is running smoothly."

The average coupon rate paid over the course of the loan, calculated against the loan principal, is 7.13%. Since the ASIL pays down the principal amount it can therefore be calculated that the true repayment value, calculated against the total outstanding loan amount, is indeed 14.79%.

The purpose of the Takoradi Green Campus Limited is to support the Takoradi Technical University and construct, own and operate the required student accommodation facilities. Takoradi Technical University moved its two largest faculties, engineering and applied science, totalling ~4,000 students to the new campus. This number is expected to increase to about 8,000 students when the facility is fully completed in 2019. Other on-site structures such as lecture halls, administration blocks, workshops have commenced development and this has been funded by the African Development Bank. Samual Quadjie, Chairman and CEO of TGC said, "We broke ground in January and are scheduled to complete the first apartment block in August later this year. The project will be built using light steel frame and makes use of containerised anaerobic digesters, solar power and other money saving, green technologies."

TGC claims to align with no less than 6 of the United Nations Sustainable Development Goals (SDG's).

The goals of the Takoradi Green Campus Project are not just to fulfil its purpose of providing the required student accommodation facilities; in doing so the Takoradi Green Campus shall be done as ecologically, socially and economically as possible.

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