Commercial Loan and Bonds in the Republic of South Sudan

IIB-DG Africa
signs MOU with ICG CAPITAL AND FINANCE CORP (UK) LTD represented by CEO, Mr. Michael A. Minsky, to procure financing requirement of US $2 billion for the Republic of South Sudan, given the collateral and off-take from crude oil sales, as a key to revitalizing the economy to the benefit of South Sudan’s citizens

May 28, 2020

ICG CAPITAL AND FINANCE CORP (UK) LTD signed on August 27, 2019, with the Republic of South Sudan represented by the Ministry of Finance, Mr. Angelo Deng Rehan, for the provision of financing and procurement of:

1. a Commercial Loan of $300 million – $500 million (three hundred million to five hundred million US Dollars) for a term of up to 5 years for the Government’s general budgetary purposes which shall be repaid from the proceeds of Crude Oil sales;
2. a Bond Issue of up to $2 billion (two billion US Dollars) in tranches (hereinafter the “Loans”) to develop the South Sudan economy, especially the oil and gas, mining, and agricultural sectors to increase South Sudan’s exports and foreign exchange.

ICG CAPITAL AND FINANCE CORP (UK) LTD expresses commitment to working diligently and wishing the project to be carried out and financed by IIB Development Group, LLC, and signed a contract on May 28, 2020, with IIB-DG.

The income flow and profitability from refined Diesel Oil, Heavy Fuel Oil, and electricity sales will be invested in rehabilitating South Sudan’s National Infrastructure such as housing, roads, railways, telecommunications, electric power, and modern high-tech Agriculture projects.

About IIB-DG Africa

IIB Development is a consortium of US-based companies specializing in financing and infrastructure development. IIB Development Group brings together experts in synergistic industries to develop turnkey innovative solutions in infrastructure and development – housing, roads, water and wastewater, energy, railways as well as financing of all these projects

IIB Development Group is a centre of excellence for financing and infrastructure development at affordable levels using environmentally sustainable approaches, which meet the growing needs of developing countries. IIB-DG offers state-of-the-art, innovative, and affordable technology and works with the governments and local partners, including, where possible, setting up manufacturing plants locally to produce building units for residential and commercial structures.

About ICG CAPITAL AND FINANCE CORP (UK) LTD

ICG Capital and Finance Corp (UK) Limited, a company registered and incorporated in the UK (Reg No: 894338) whose registered office is at 37 Warren Street London, W1T 6AD. London, UK, represented by Mr. Michael A. Minsky in the capacity as CEO.

ICG Capital and Finance Corp (UK) is an international finance and investment company having a significant track record in arranging the procurement of financing for Sovereigns and Corporations.

About SOUTH SUDAN

During the last 10 years, South Sudan has exported nearly 200,000 barrels of crude oil a day but somehow has gained nothing at all from these crude oil export sales. For the simple reason that:

1. The bulk of the income goes to North Sudan.
2. The Oil Pipeline operating cost payment is very high.
3. The cost of Oil Production element.

These three payment deductions leave South Sudan with negligible or no income stream from its oil sales.

ICG recommends a revolutionary and dramatic solution to this disastrous and untenable situation. Instead of exporting crude oil at a loss, they can sell refined oil products – namely Diesel Oil and Heavy Fuel oil – and electricity, all at a significant profit.

1. Crude Oil sales income

   In the present market conditions for the sale of crude oil, particularly Dar Blend, South Sudan has no economic benefit or profit from its oil sales. At a selling price of approx. $50 per barrel, deductions for payment to (North) Sudan of $24.50 per barrel, Oil pipeline Operators take $15, and Oil Company producers take approx. $10 per barrel, leaving South Sudan with nothing at all.

2. Establish an Oil Refinery and Power Plant

   The solution ICG proposes and recommends is to build an Oil Refinery of 150,000 BPD capacity in the Dar Blend-producing oil field near Palogue in Upper Nile State plus a Power Plant of 1,000 MW capacity. ICG shall procure all the financing for their establishment, which we shall raise as a loan for the Government

3. Profitability & Self Sufficiency

   1. Diesel Oil Production
      Sales of Diesel produced at the proposed new refinery to South Sudan and overcoming the need to import Diesel will not only save on foreign exchange outflow but also exporting the Diesel to Ethiopia will guarantee export earnings.
   2. Heavy Fuel Oil Production
      Additionally, by utilizing the Heavy Fuel Oil also produced at the refinery to fire the new Power Plant will also provide much-needed electricity to the South Sudan National Grid and enable export of electricity to Ethiopia.
      Both of these solutions, likely to produce an income flow of 1 – 2 billion USD per annum into the South Sudan Government coffers.
4. National Infrastructure Benefit

   The income flow and profitability from refined Diesel Oil, Heavy Fuel Oil, and electricity sales can be wisely invested in rehabilitating South Sudan’s National Infrastructure such as: housing, roads, railways, telecommunications, electric power, and modern high-tech Agriculture projects.

Media Contacts
Carolina Mateos
Corporate Affairs and Investor Relations
IIB Development Group
info@iibdevelopmentgroup.com