- eaif
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- EAIF. Emerging Africa Infrastructure Fund - EAIF. First dedicated debt fund for sub-Saharan Africa Size: US$365 million Original sponsor: UK Government – DFID 3 other European Governments joined (Sweden, Netherland, Swiss) - PowerPoint PPT PresentationTRANSCRIPT
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- EAIF- EAIF
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Emerging Africa Infrastructure Fund - EAIF
First dedicated debt fund for sub-Saharan Africa
Size: US$365 million
Original sponsor: UK Government – DFID
3 other European Governments joined (Sweden, Netherland, Swiss)
Debt from three development finance institutions and two private sector
international banks
Public/private sector partnership
Donor aid funds leveraged private sector capital for development
purposes
First multi-donor initiative by Private Infrastructure Development Group
(PIDG)
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EAIF – investment policy
Lend to private sector owned, managed and controlled entities with infrastructure sector focus
– Power– Transport– Telecoms– Water– Manufacturers of components of infrastructure e.g. cement– Infrastructure within mining, agribusiness projects
Sub-Saharan Africa focus excluding Mauritius Investment Size:US$10 -36 million, however FMFM can arrange US$ 200
million and more through its financing partners Tenor: up to 15 years Instruments: Senior and Mezzanine Debt (possibly with equity features) Does not require a Political Risk Insurance (PRI)
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EAIF - sample transactions
Project: Ethiopian Airlines Sector: Transport Country: Ethiopia Description and Financing
Parameters:– this is a unique project, EAIF has
committed a US$ 36 million loan to the airline expansion project.
– Ethiopian Airlines is a 100% publicly-owned entity often held up as a model business for other airlines in Africa.
– The EAIF financing is bridging a crucial gap enabling the airline to purchase additional, new aircraft at a cost of US$ 460 million.
Project: AES Sonel Sector: Power Country: Cameroon Description and Financing
Parameters:– EAIF provided a US$ 30 million
medium term loan facility with a 10-year tenor for the construction of a US$ 75 million, 85MW power
– plant. EAIF's financing bridged an important initial gap enabling the project to move forward, prior to participation from a much larger financing group
– In 2007 a restructuring took place as part of a larger syndicated financing of approximately Euro 300 million from various DFIs.
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EAIF - sample transactions (contd’)
Project: Moma Sector: Mining Country: Mozambique Description and Financing Parameters:
– The developers of this titanium mineral sands project approached EAIF as a ‘lender of last resort’.
– Located in one of the most under-developed regions of Mozambique, the US$ 413 million project is the second lowest cost producer of titanium in the world.
– EAIF committed US$ 24.5 million of senior and subordinate debt (total debt package of US$270 million) as Senior and Subordinated Lender. The project received deal of year awards from both the Mining Journal and Project Finance International publications.
Project: Seacom Sector: Telecom Country: Pan African Description and Financing Parameters:
– The USD 600m Seacom project is the first undersea fibre optic cable project along the east coast of Africa, the only region in the world not currently served by such an infrastructure.
– EAIF provided USD 35m debt financing to a special purpose vehicle controlled by Industrial Promotion Services (Kenya) Ltd, one of the sponsors and a subsidiary of the Aga Khan Fund for Economic Development.
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EAIF - deals pipeline
EAIF has a strong diversified pipeline across countries and sectors including among others
– Power projects in Uganda, Kenya and Nigeria
– Manufacturing projects in Kenya, Tanzania and Nigeria
– Mining projects in DRC, Congo and Mozambique
– Transport projects in Kenya, Nigeria and Senegal
– Telecom Projects in Tanzania, Guinea and Pan-African
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GuarantCo
Credit enhancement of local currency debt issuance
by the private, municipal and Parastatal
infrastructure sectors in emerging markets
Covers similar infrastructure sectors to EAIF
Operates globally
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GuarantCo offers
Guarantees covering default risk on underlying debt service
- partial credit guarantees
Guarantees covering default risk due to specific events
- partial risk guarantees
Cover for senior, mezzanine or sub debt; maturity, coupon or principal strips,
carbon credits
Other methods of risk transference e.g. insurance / reinsurance or CDS /
derivatives
Preference for risk sharing (defined on a case-by-case basis)
Acceptance of certain local currency risks
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GuarantCo - sample transactions
Celtel Kenya
Partial Credit Guarantee (75%) of
a $50m equivalent 5 year bond
issue for network expansion. Only
the third commercial bond issued
in Kenya and largest at that time
– Closed Dec 05.
– Refinanced in Feb 07
Celtel Tchad 100% guarantee of $14m equivalent
bank loan. Local lenders, Afriland
First Bank and BDEAC, also lent
$20m equivalent without guarantee
– Closed April 2007
– Network expansion to more
rural areas, which will aid both
local communities and the
significant nomadic population
in Chad
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GuarantCo - deals pipeline
GuarantCo has a strong diversified pipeline across countries and sectors including among others
– bio ethanol project in Central Java– mobile phone mast financing in India– corrugated steel plant financing in Tanzania and Kenya– solid waste management project in Vietnam– toll roads in Nigeria and Kenya– new private sector utility in Uganda– steel plant in India– securitisation of housing micro finance mortgage receivables in
Central and Southern America
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Project Development FacilityProject Development Facility
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We can provide grant funding to new projects
The grant funding supports the following activities
Infrastructure Development Strategies: – Studies intended to support go/no decision for new projects
Environmental Studies: – Studies intended to support the Project’s environmental aspects
Pioneering or Pilot Transactions: – Support to the design and implementation of particular projects or
transactions such as feasibility studies Capacity Building:
– Activities aimed at policy development and initial legal work
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Infrastructure projects financed or in the process of financing by FMFM(*)
* In Sub Saharan Africa
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An example of companies we worked and are working with
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Contact details
Orli Arav
DirectorFrontier Markets Funds ManagersT: +44 (0) 20 7815- 2782M: +44 (0) 77254 - 29177E: [email protected]