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- EAIF

- 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)

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- EAIF

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  1. - EAIF

  2. 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)

  3. 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)

  4. 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.  EAIF - sample transactions

  5. 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. EAIF - sample transactions (contd’)

  6. 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

  7. 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

  8. 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

  9. 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 GuarantCo - sample transactions

  10. 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

  11. Project Development Facility

  12. 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

  13. Infrastructure projects financed or in the process of financing by FMFM(*)                  * In Sub Saharan Africa

  14. An example of companies we worked and are working with

  15. Orli Arav Director Frontier Markets Funds Managers T: +44 (0) 20 7815- 2782 M: +44 (0) 77254 - 29177 E: orli.arav@frontiermarketsfm.com Contact details

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