KfW IPEX-Bank finances highly energy-efficient Medupi coal fired power station in South Africa / Improving the country's power supply

Frankfurt am Main (ots) - As coordination bank, KfW IPEX-Bank,
together with six other banks, is financing the boilers for the 4,800
MW Medupi coal-fired power station at Lephalale/South Africa. The
boilers will be supplied by the German plant manufacturer HPE
(Hitachi Power Europe, formerly Babcock Borsig) domiciled in the city
of Duisburg and its local partner Hitachi Africa. Thus, the financing
supports German exports as well as local industry. The power plant is
urgently required in order to reduce the bottlenecks in South
Africa's power supply, which hamper the country's economic
development.

The total loan volume amounts to EUR 530 million. KfW IPEX-Bank
contributes EUR 81.5 million to the financing; which is being covered
by Euler Hermes, the German Export Credit Agency (ECA). The remainder
is provided by six other banks. In this consortium KfW IPEX-Bank acts
as documentation bank, ECA agent and facility agent. The financing
agreement was signed on 13 May 2009.

The loan thus complements the financing of the HPE boilers and
follows a EUR 250 million loan already extended by KfW IPEX-Bank in
September 2008. That financing also was covered by a Euler Hermes
guarantee and, in addition, was included in the CIRR (Commercial
Interest Reference Rate) mechanism, under which the Federal Republic
of Germany assumes the risk of interest rate fluctuations that may
occur.

The borrower is state South African power utility Eskom (the
provider of the vast bulk of the country's electricity supply), with
which KfW IPEX-Bank has maintained a long-term business relationship.
In 2008 Eskom consistently had electricity supply problems and was
unable to meet the country's demand for electricity. In January 2008
Eskom announced emergency measures that curtailed power to the
largest electricity users in the country. The electricity supply
problems had both chronic and acute effects on the South African
economy. Medupi is urgently required, also with a view to the
approaching 2010 Football World Championship.

About KfW IPEX-Bank GmbH

Within KfW Bankengruppe KfW IPEX-Bank GmbH provides project and
corporate financing as well as trade and export financing
domestically and abroad. Worldwide it conducts all market activities
of KfW Bankengruppe that are carried out on commercial terms. KfW
IPEX-Bank GmbH has been operating as a legally independent subsidiary
since 1 January 2008 and contributes significantly to the promotional
mission of KfW Bankengruppe. It has approx. 490 employees (as of May
2009) and is represented in the key economic and financial centres
throughout the globe.

Originaltext: KfW-IPEX-Bank
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Contact:
Dela Strumpf
KfW IPEX-Bank GmbH, Palmengartenstraße 5-9, 60325 Frankfurt
Pressestelle: E-Mail: dela.strumpf@kfw.de
Tel.: 069 7431-2984,
Fax: 069 7431-9409,
E-Mail: info@kfw-ipex-bank.de,
Internet: www.kfw-ipex-bank.de