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Roland Janssens, Deputy Head, Emerging Africa Infrastructure Fund
Introduction to Harith, FMFM , EAIF and GuarantCo
Frontier Markets Fund Managers is part of the Harith Group 2
Harith General Partners
Debt & Guarantee Products Equity
Frontier Africa Investment Resource (FAIR)*
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Introduction Frontier Markets Fund Managers, EAIF & GuarantCo
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EAIF ▪ First dedicated infrastructure debt fund for
sub-‐Saharan Africa ▪ Financed 49 projects to date with a total
exposure of USD 970m ▪ EAIF offers long-‐term USD and/or EUR
denominated debt (Senior, Subordinated and Mezzanine)
▪ Lend to private sector owned, managed and controlled entities with infrastructure sector focus: -‐ Power; -‐ Transport; -‐ Telecoms; -‐ Water; -‐ Oil & Gas mid-‐ and downstream
infrastructure; -‐ Manufacturers of components of
infrastructure e.g. cement, steel; -‐ Infrastructure within mining,
agribusiness projects. ▪ The debt amount available from EAIF for
any single transaction is typically between USD 10 million and USD 35 million
▪ The maximum tenor is typically up to 20 years, with appropriate grace periodsIn principle, no requirement for Political Risk Insurance (PRI)
GuarantCo: “Credit enhancement of local currency debt issuance by the private, municipal and parastatal infrastructure sectors in lower income countries” ▪ Fitch Rating: AA-‐ (Stable); ▪ Guarantees local currency financing and
also USD for certain countries; ▪ Capital of USD 200m, with commitments to
increase to USD300m by end of 2014; ▪ Covers similar infrastructure sectors to EAIF
and also urban regeneration (eg social infra and housing), operates globally. !
GuarantCo offers: ▪ Partial credit guarantee covering default
risk on a portion of a loan or bond -‐ generally on demand and unconditional;
▪ Partial risk guarantee covering default risk due to specific events -‐ such construction failure or revenue shortfall;
▪ Cover for senior, mezzanine or sub debt; maturity, coupon or principal strips; Loans, bonds or securitisation;
▪ Other methods of risk transference considered (e.g. insurance / reinsurance or CDS / derivatives);
FMFM ▪ FMFM is the fund manager of:
▪ The Emerging Africa Infrastructure Fund; and
▪ GuarantCo !FMFML is responsible, on behalf of EAIF and GuarantCo, for the origination of transactions, structuring and negotiating documentation, performing due diligence on transactions and associated entities and monitoring EAIF's and GuarantCo’s portfolio !
▪ Our mission is to find commercial solutions to overcome development challenges !
▪ Based in London !▪ Financed >60 projects to date with a total
exposure of USD 1.2bn !▪ FMFM is a wholly owned subsidiary of specialist
infrastructure fund manager, Harith General Partners (Pty). Harith is the inaugural fund manager appointed to manage the Pan African Infrastructure Development Fund (PAIDF)
Introduction to Harith & PAIDF4
PAIDF 1 !• The Pan African Infrastructure Development Fund (PAIDF) was
created in early 2007 !• The vision for the PAIDF is to create a financing platform for
infrastructure development that will accelerate Africa’s growth !• Fund Size: US$ 630m, raised solely from African investors. Investors
include a.o. PIC/GEPF, AfDB, Old Mutual, Standard bank, SNITT, DBSA, ABSA !
• Tenor: 15 year close-‐ended fund, with an 7-‐8 year commitment period and a 7-‐8 year harvesting period !
• Products: Equity (may consider quasi equity and mezzanine in conjunction with equity) !
• Investments of US$ 25 -‐ 70 million per project !• Sector targets are energy, telecommunication, transport, and water
Harith General Partners !▪ Harith is the inaugural fund manager appointed to manage the Pan
African Infrastructure Development Fund (PAIDF) – the first and only 15 year Private Equity fund in the continent !
▪ PAIDF 2 achieved first close in April 2014: US$ 425 million Second close expected in the next 12-‐18 months which will increase the fund size to US$ 1-‐1.2bn !
▪ Experienced investment team headquartered in Sandton, South Africa !
▪ Focussed at spearheading initiatives aimed at ensuring that the public and private sectors capitalise and enjoy great returns by investing in infrastructure in the continent !
▪ Harith also owns 100% of London-‐based Frontier Markets Fund Managers !
Core Principles ▪ Values: Partnership, Solutions-‐driven and Worldly with African
roots ▪ Vision: To mobilise global capital to unlock wealth and potential ▪ Mission: To match customer expectations to opportunities in our
continent and also manage the investment returns and risk for multiple funds and provide advisory services
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The full presentation is available in the members sections of www.homestrings.com
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This presentation was part of the Investing in Eastern Africa conference
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