How Basel III impacts ECA-backed project finance

http://www.iflr.com/Article/3358235/Banking/How-Basel-III-impacts-ECA-backed-project-finance.html

Nedbank Capital - Infrastructure, Energy & Telecommunications Project Finance

http://www.capital.nedbank.co.za/capital/infrastructure-energy-and-telecommunications

"Financing our future

Nedbank Capital has long been considered the market leader in the financing of large infrastructure, energy related and telecommunications projects.

• We have been awarded numerous accolades in recognition of our innovations and accomplishments in the fields of Infrastructure, Energy and Telecommunications.
• In-depth knowledge, extensive experience, recognition of our clients‘ unique needs and a commitment to identifying new opportunities puts our team ahead of the pack.

We provide advice and services on projects relating to:

Infrastructure:
Includes limited recourse financing, public-private partnerships (PPPs), and concluding deals in (amongst others) road, rail, water, industrial and social infrastructure projects.

African Infrastructure Review Nedbank Capital September 2012 (2.19 MB)

African Infrastructure Review Nedbank Capital December 2012 (1.26 MB)

African Infrastructure Review Nedbank Capital March 2013 (1.4 MB)

African Infrastructure Review Nedbank Capital June 2013 (1.62 MB)

African Infrastructure Review Nedbank Capital September 2013 (1.5 MB)

Energy:
Our energy team has successfully concluded limited recourse finance deals within the electricity, oil & gas, and biofuels sectors, both internationally and within Africa. We provide financing to parastatals and corporates within this sector. With the future of the environment and South Africa‘s electricity supply at stake, we are committed to funding various renewable energy projects from landfill gas, to solar and wind turbine power. As one of the leading investors in infrastructure projects in South Africa‘s financial markets, we provided the financial backing for approximately 37% of the more than 1,200MW worth of energy capacity represented by all the bids submitted in the first phase of South Africa‘s Renewable Energy IPP programme. We look forward to working with government and other environmentally-minded businesses and financial institutions to ensure that renewable energy remains a key driver of our country‘s sustainable future.

Energy 2013 Presentation (1.1MB)

African Renewable Energy Review Nedbank Capital July 2012 (1.75MB)

African Renewable Energy Review Nedbank Capital September 2012 (2.28 MB)

African Renewable Energy Review Nedbank Capital November 2012 (1.06 MB)

African Renewable Energy Review Nedbank Capital January 2013 (1 MB)

African Renewable Energy Review Nedbank Capital March 2013 (1.2 MB)

African Renewable Energy Review Nedbank Capital May 2013 (1.3MB)

African Renewable Energy Review Nedbank Capital July 2013 (1.2 MB)

African Renewable Energy Review Nedbank Capital September 2013 (1.2 MB)

African Renewable Energy Review Nedbank Capital November 2013 (1.27 MB)

Telecommunications:
Our focus spans from fixed-line operators and the mobile sector to infrastructure sharing and broadband capacity provisioning through undersea cable and satellites. We finance clients from start-up to maturity across the entire spectrum of capital required, providing innovative and flexible financing solutions."

Cresco Project Finance

http://www.crescoprojectfinance.co.za/Home.htm#&panel1-1 

"The Project Development Continuum, from concept through feasibility studies, finance structuring, funding and construction to operation, is a complex, intricate and multi-staged process where the promoter and other project stakeholders require continuous specialist support.

CRESCO provides this specialist financial, commercial & project management support and utilises its specialist expertise and skilled resources to support the entire project development process. CRESCO provides a broad range of services to clients engaged in the acquisition, development and financing of projects across all industry sectors, within South Africa and Africa.

Established in 2005 on a philosophy of entrepreneurial thinking, CRESCO offers its clients advice on niche project finance solutions and provides transactional project development and implementation support outside of traditional balance sheet finance solutions.

CRESCO is an authorised agent for MIGA, the World Bank Group's political risk insurance agency. Click here for more information."

Standard Bank Project Finance

http://corporateandinvestment.standardbank.co.za/cib/products/finance/Project-finance?s_kwcid=AL!119!3!37724982516!b!!g!!%2Bproject%20%2Bfinancing&ef_id=U7fXRAAAAOWePCQv:20140705114339:s

"Project finance
Although gearing has slowed globally because of the financial crisis, the demand for infrastructure remains high and cash flow prospects remain strong across a number of sectors in countries in Africa and emerging markets. Also, strong government support is evident for projects across power and infrastructure, as Africa increases capacity in the natural resources sector. Growth remains contingent on upgrades and development to facilities across power, roads, rail, ports and social infrastructure. The challenge for financial institutions is to provide competitive and sustainable finance solutions.
Standard Bank is the largest bank in Africa by assets and earnings. With broad transactional and commercial experience in Africa and selected emerging markets, we offer a full spectrum of project finance products and leading capabilities in Africa.
With ongoing pressure in financial markets, we have a proven ability to secure appropriate funds for our clients on the best possible terms. Our long-standing experience in emerging markets and deep understanding of our clients means that we can match them to suitable investors.
We focus on South Africa and developments in Africa, particularly where they relate to countries where we have a presence. We also link investors from selected emerging markets to opportunities in Africa.
Our team draws on the expertise of product teams and sector specialists across the full capability of Standard Bank where necessary, to ensure our solutions are fit-for-purpose and appropriate to client need.
Why talk to us?

• We have the widest and most established banking network in Africa, and use in-country skills and local knowledge to develop project working finance solutions for a broad client base.
• Our experts are knowledgeable in sectors most relevant to Africa and emerging markets, and have an in-depth understanding of local legal, fiscal and regulatory frameworks across Africa.
• We identify and secure funding from various sources, to provide clients with appropriate funding solutions.
• Standard Bank’s partnership with the Industrial and Commercial Bank of China (ICBC) gives us an unrivalled ability to facilitate trade and investment between Africa and Asia. It provides further support through ICBC’s international lending and arranging capabilities, as well as access to Chinese developers and lenders.
• We have established relationships with development finance institutions, and ensure that all developmental aspects of our projects are met.
• Standard Bank has long understood the value of pooled funds to address gaps in local capital markets. We are involved in the following funds:
  • The $305 million Emerging Africa Infrastructure Fund
  • The $175 million African Infrastructure Investment Fund
  • The R800 million Southern African Infrastructure Fund, which has fully invested its capital, of which almost a third was provided by Standard Bank.

Services
Standard Bank acts in any one or a combination of the capacities of financial advisor, arranger and underwriter of senior, mezzanine debt and equity for all large capital projects. Our project finance services include:

• Financial modelling and sensitivity analysis
• Risk evaluation and risk mitigation strategies
• Advice on the structure of project contracts
• Taking an active role in negotiations
• Financial structuring
• Arranging of multi-source funding, including development finance and export credit. Where required, we provide specialist and customised political risk structuring, and leverage relationships with key risk insurers, including Export Credit Agencies
• Underwriting and lending

Our project finance team has specialist skills and industry-specific knowledge. We work closely with other areas of the bank to create customised solutions that draw on sector and product expertise from across the bank. We have particular experience in:

• Power and infrastructure – in Africa, there is huge unmet demand in the sector, presenting significant opportunities and the need for an expert partner who can advice on and secure appropriate funding
• Mining and metals – with global demand increasing again, emerging markets in Africa stand to benefit from this sector, which also provides a source of funding for other sectors with higher multiplier effects
• Oil and gas – the sector is major contributor to GDP in several countries in Africa. A number of new discoveries are contributing to strong sector growth
• Telecommunications and media – a comparatively new sector in Africa, it is well supported by international investors. The sector is currently dominated by telephony but data services are slowly gaining prominence

Guided by the Equator Principles
Standard Bank Group is an Equator Principle Financial Institution (EPFI), having adopted and integrated all 10 of the Equator Principles which relate to Project Finance. Projects financed by EPFIs are required to be socially responsible and reflect sound environmental management practices. The Equator Principles are based on the International Finance Corporation (IFC) performance standards on social and environmental sustainability, and on the World Bank Group’s Environmental, Health and Safety general guidelines that are applied globally and across all industry sectors by banks providing project finance. The principles apply to all new project finance deals above US$10m. Standard Bank is a member of the Equator Principles Steering Committee."

International Finance Corporation (IFC)

"Industries in Sub-Saharan Africa

IFC Hits Record Investment, Advisory Volume to Promote Development in Sub-Saharan Africa

IFC committed a record $5.3 billion to new investments and carried out advisory services projects worth $65 million in Sub-Saharan Africa in its most recent fiscal year. IFC supported infrastructure, health, agribusiness and a range of activities in conflict affected states and helped Africa’s entrepreneurs gain access to finance. 

IFC invested $3.5 billion from its own account, and mobilized $1.8 billion from other investors.  In FY 2013, IFC’s supported projects that provided loans for 54,000 small and medium businesses, encouraged 13.7 million microfinance clients; and improved health and education for 360,000 people. IFC’s investments in wind power and other renewable energy reduced 667,000 tons of greenhouse gas emissions.

Advisory Services

IFC Advisory Services spending reached $65 million during the most recent fiscal year. Projects were active in 42 countries, with 126 projects, valued at $217 million over the life of the projects. During fiscal year 2013, advisory services projects improved access to lighting and education  services for 1.6 million people; generated 27,000 jobs; trained entrepreneurs and connected farmers to global markets. Three public-private partnership mandates were successfully closed, helping deliver health services to 360,000 people in Lesotho and Nigeria and power to 75,000 in Liberia.

IFC and the World Bank's Investment Climate Advisory Services worked with governments in Sub-Saharan Africa to implement over 50 reforms that benefited the private sector in 17 different countries. In Uganda, for example, licensing reforms led to private sector cost savings of $15.5 million. The 2013 Doing Business report found that of the 50 economies globally making the most improvement in business regulation for domestic firms since 2005, one-third were in Sub-Saharan Africa.

Agribusiness

IFC’s agribusiness investments in Sub-Saharan Africa reached $600 million in the 2013 fiscal year. By investing in companies such as the Kenya Tea Development Agency and the Export Trading Group, IFC created economic opportunity for 263,000 farmers in sub Saharan Africa.

Infrastructure

IFC funding for infrastructure projects in Africa reached $1.5 billion. IFC’s Infraventures division joined hands with private sector partners to develop wind power projects in Tanzania and Kenya. In West Africa, IFC invested aviation companies and mobilized funding for the Lomé port to expand the transportation network and improve trade infrastructure in the region.   

Fragile and Conflict Affected States

Assisting in fragile and conflict situations is a strategic priority for IFC in Africa, and during the most recent fiscal year, IFC provided support in nearly all African economies emerging from conflict. IFC’s Conflict Affected States in Africa Program provided advisory support and funding to eight countries (Burundi, the Central African Republic, Cote d’Ivoire, the Democratic Republic of Congo, Guinea, Liberia, Sierra Leone, South Sudan). IFC’s programs in these countries helped strengthen the private sector foundation, and create opportunity and jobs. Last fiscal year, CASA received approval to expand to all 19 fragile and conflict affected states in Sub-Saharan Africa and will focus the first phase of the expansion on Mali, Somalia, and Zimbabwe. 

Treasury

Through innovative use of treasury operations, IFC expanded its capability to develop domestic capital markets and serve clients with local currency financing. In FY13, IFC provided more than $350 million in local currency loans to countries in Sub-Saharan Africa. IFC pioneered a Nigerian naira bond, raising $75 million in local currency for private sector investments. IFC is working with authorities in a number of countries including Ghana, Nigeria and Zambia on programs that will enable IFC to regularly issue local currency bonds.

IFC’s focus on encouraging investments between emerging markets was strengthened this year through new investments of nearly $400 million in so-called South-South investments. This included African cross-border investments, such Mali-based Azalai Hotels Group’s new hotel project in Cote d’Ivoire. In Nigeria, IFC financing supported major investments by two Indonesian companies: Indorama’s investment in Eleme Fertilizer and Wings Group’s Nigerian operations...."

 http://www.ifc.org/wps/wcm/connect/region__ext_content/regions/sub-saharan+africa/investments/investments

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FMO

About us

FMO is the Dutch development bank. We support sustainable private sector growth in developing and emerging markets by investing in ambitious companies. We believe a strong private sector leads to economic and social development, empowering people to employ their skills and improve their quality of life.

Finance & Loans

We offer clients several financing and services products – from loans and credits to mixed packages, often in local currencies.

From traditional to tailored

FMO finances commercially viable companies and projects through a variety of finance products and services – designing our funding packages to match each client’s situation, needs and interests.

Private Equity

Equity can be crucial for a business’s growth and expansion – but is often unaccessible to companies in developing countries. As an equity investment partner, FMO brings more to the table than financing alone.

Committed to the future

Growing businesses need knowledgeable investors that not only provide necessary funding, but also share a long-term vision. FMO provides equity with a goal that reaches beyond the businesses to the benefit of their economies and society at large. And because we provide such scarce, high-risk finance, FMO looks for clients that also share a vision of long-term impact.

Successful investment approach

We build on our successful strategy of investing in private equity funds and making co-investments alongside these funds. We seek leadership in our focus sectors Financial Institutions and Energy. Our focus and network in these sectors translates into a substantial deal flow of visible and often innovative deals.

Through a top-down market approach we identify and pursue strategic deals with the most promising players in a sector. From the very start, FMO focuses on a clear exit strategy as part of negotiations and structure – usually taking a minority interest in a project’s equity to pave the way for more autonomous investment paths.

An anchor investor

In our fund investing activities, we cement our leadership by supporting not only fund managers with a positive track record, but also first time fund managers as anchor investor in frontier market funds or funds in FMO's focus sectors. These fund managers can benefit from FMO's substantial network and our knowledge of best practices in emerging markets private equity.

In addition to conducting a thorough business and financial due diligence, we also look for clients willing to make solid social, economic and governance conditions part of their business model, if these are not already in place.

FMO can answer private equity needs through:

• Investment in private equity or mezzanine funds
• Co-investments with our investee funds
• Direct equity investments in financial institutions or energy companies or projects
• Mezzanine transactions combining elements of equity and debt

A catalyst

Our participation often acts as a catalyst – attracting interest from other suitable investors who would otherwise avoid what are still considered higher-risk projects.

By supporting first time fund managers as an anchor investor, we pave the way for other investors to join later on. In our direct investments, our contribution to the investee companies' capital base allows these companies to access debt finance from local or international banks...."

 https://www.fmo.nl/home

DEG

"DEG is an experienced partner for private-sector companies investing in developing and emerging-market countries. Together with our clients we develop financing packages which are tailor made to the specific investment project and its risks. Furthermore, we offer individual advice in all phases of a project. DEG also runs special programmes on behalf of the federal government, promoting entrepreneurial measures with an impact to development.

The mission of DEG, a subsidiary of KfW, is to promote business initiative in developing and emerging market countries as a contribution to sustainable growth and improved living conditions of the local population. To this end, we make long-term financing and advice available to private enterprises investing in these countries.

To be precise:

• We finance direct investments in our partner countries in order to make a sustainable contribution to advancing their economic development.
• We make long-term investment capital available as a means to share the risks arising from the investments and to make them less vulnerable to crises.
• We give advice to companies on questions related to risk analysis and product development.
• We invest in undertakings in all sectors of the economy, ranging from agribusiness to the manufacturing industry and services to infrastructure.
• And we promote the development of the financial sector while strengthening local capital markets in order to facilitate reliable access to investment financing on the ground, especially for small and medium-sized enterprises. By doing so, we contribute to additional growth effects.
• We use almost exclusively own funds rather than budget funds from the Federal Government.
• We are guided by international standards for environmental and social sustainability.
• We pay particular attention to ensuring that our investments generate positive development impacts in our partner countries. DEG thus contributes to the Millennium Development Goals, which are a joint commitment of industrial and developing countries to tackle poverty in a sustainable manner..."

 https://www.deginvest.de/International-financing/DEG/Die-DEG/Was-wir-tun/

Africa Finance Corporation (AFC)

"AFC’s mission is to help address Africa’s infrastructure development needs while seeking a competitive return on capital for its shareholders. Since it began operations in 2007, AFC has created the building blocks with which to achieve this objective.

Our Vision: To be the leading African institution in infrastructure financing on the continent

Our Mission: To foster economic growth and industrial development of African countries, while delivering a competitive return on investment to our shareholders

 

 http://www.africafc.org/

Eleqtra

"eleQtra is a leading player in the development, investment, management and operation of private infrastructure in emerging economies."

 http://eleqtra.com/about/

 

Old Mutual Specialised Finance ("OMSFIN")

"Specialised Finance

Old Mutual Specialised Finance (OMSFIN) is a proprietary investment business and an alternatives investment manager. Through its capital market activities, OMSFIN delivers above-average, risk-adjusted returns for a predetermined level of risk to shareholders. 

OMSFIN’s two primary business areas include:

Trading and Structuring: This business is responsible for funding OMSFIN’s proprietary balance sheet activities. The team risk-manages OMSFIN’s portfolio using advanced hedging and portfolio structuring techniques, while taking advantage of any identified market anomalies. The Trading and Structuring team is also responsible for managing Old Mutual (South Africa)’s shareholder guarantees. They use interest rate and equity derivative products to hedge market risk and have been instrumental in reducing interest rate volatility while, at the same time, improving the performance and capital efficiency of the funds. Read more...

Asset Origination: This business participates in the South African capital markets – originating and managing assets for both Old Mutual (South Africa) and OMSFIN. The business operates across the structured finance continuum, offering financing in areas of structured debt, leverage, property, project and mezzanine finance. Read more ...

 http://www.oldmutual.co.za/corporate/asset-management/om-investment-group-%28sa%29/boutiques-and-units/specialised-finance.aspx