About AFCORP Investments
AFCORP Investments comprises an experienced corporate finance and investment banking team which has originated and executed transactions in diversified sectors across sub-Saharan Africa. AFCORP Investments has extensive expertise in the financial, legal, regulatory, and technical aspects of deal structure as well as sector specific capability in major growth industries in sub-Saharan Africa.
AFCORP Investments and Loop Capital Markets have formed an international joint venture with a particular focus on the Power & Energy sector. Our strategic partners, Loop Capital, are a full service investment bank headquartered in Chicago in the USA. AFCORP Investments also participates as a private sector partner in the “Power Africa” initiative launched by President Obama and implemented in Sub-Saharan Africa by USAID.
AFCORP Investments has in-depth knowledge and experience with respect to capital structuring, corporate finance, negotiating and deal execution in key target sectors including engineering and manufacturing, agriculture and agribusiness, pharmaceuticals, telecommunications, power and energy.
We focus on servicing clients in three general areas:
Mergers & Acquisitions
The firm advises on the acquisition or disposal of assets in support of a given business strategy; Corporate finance where the firm facilitates capital raising in support of target business objectives.
Business development and execution of the business strategies where routes to market, joint ventures, regulatory and licensing, and other specific business development efforts are undertaken.
Strategic Advisory activity where AFCORP provides analysis, direction, and development of business growth and market expansion plans.
Afcorp focuses on a range of infrastructure projects in the telecommunication, transportation, power, renewables, and energy sectors in South Africa and Sub Saharan Africa that are finance ready. As an independent financial advisory firm Afcorp provides clients access to attractively priced international and domestic institutional financial equity, and debt providers, as well as strategic equity operational investors. The clients are generally profitable established South African and International private companies or investors represented by strong management teams, demonstrated market niches, and good growth prospects. Services include private placements and investor search programmes to identify like-minded investors as strategic equity partners
Financing and acquisitions
Afcorp specialises in both “buy and sell side” M&A advisory services, corporate finance, infrastructure, and private equity in Sub Saharan Africa. The company provides advisory and financial services to institutional clients as well as high net worth individuals. While the investment approach at Afcorp Investments is sector agnostic and diversified (70% M&A and 30% infrastructure), we have particular strengths in power, energy, telecommunications, information technology, industrial manufacturing, agri-processing, and the infrastructure sectors. Afcorp is also a formal private sector partner to former President Obama’s Power Africa initiative.
AFCORP Investments – Select Representative Transactions
- Financial advisor and joint equity arranger in funding structure for a sub-Saharan African broadband mobile operator in a confidential transaction comprised of US$40million of equity. The proceeds of the transaction were targeted to meet working capital and operational requirements, as well as to replenish its permanent capital reserves, providing a strengthened balance sheet. The telecommunications operator group was comprised of high-speed, innovative, mobile broadband networks (4GLTE) already established in four Sub-Saharan countries. The Company has licensed operating companies incorporated in Nigeria, Uganda, Tanzania and Democratic Republic of Congo
- Lead financial advisor and joint equity arranger for 100% acquisition of a Transport Group in a transaction valued at R600 million and listing on the main board of the JSE.
- Joint advisor with respect to establishment of a JSE listed R500m special purpose acquisition vehicle for private capital client targeting institutional investors to implement an industrial investment strategy in southern and sub-Saharan Africa.
- Advised the African Development Bank as lead project manager of international consortium to develop the detailed feasibility study for structuring a $500 million Fund-of-Funds that will allocate institutional capital to private equity funds targeting investing in agriculture and along the agribusiness value chain in Africa.
- Advised as lead project manager of the international advisor to EDI Holdings on the R40 billion restructuring of the electricity distribution industry in South Africa. This involved the proposed merger and acquisition of the distribution businesses and assets of Eskom, and 188 municipalities for the creation of six Regional Electricity Distribution companies and a regulated monopoly Advised as lead project manager of an international consortium EDI Holdings on the R40 billion restructuring of the electricity distribution industry in South Africa.
- Financial advisor to the largest black-owned engineering company in South Africa engaged primarily in the manufacturing, repairing and distribution of industrial engineering products and services. In support of the Company’s strategic business objectives and investor solicitation efforts arranged more than R300m in debt and equity capital which enabled the expansion of the Company, from Turnover R100m to R1 billion as a lead advisory concluding the financing on four successful acquisitions.
- Project Finance and PPP advice to Hugh Brown & Associates (Pty) Limited a South African registered company and to Zambezi Synthetic Fuels SA a Mozambican registered companies and to the Government of Mozambique in relation to a $15 billion USD waste coal to liquids (diesel) project involving the sustainable utilisation of waste coal fines supplied by the Brazilian mining house Vale. The waste coal fines and mounds of resulting soil and water polluting waste, is a catastrophic environmental hazard which could be substantially mitigated by the implementation of this project.
- Project finance advice to Hugh Brown & Associates in relation to a $ 3 million Ethanol fuel and sugar project with Chinese sourced project financing; and a $ 100 Million USD Massingir Power project and benefiting from English/ South African and Chinese sourced project financing 2012 to date;
- Project finance advice to the Development Bank of Southern Africa Limited (“DBSA”) in respect of Financial loan involving DBSA and Rand Merchant Bank as regards an export finance (COFACE) driven 74 million rand industrial water treatment, limited recourse, project financing in Durban, South Africa (sponsored by Ominium de Traitement et de Valorisation (“OTV”); a subsidiary of the French industrial concern Vivendi). 1999- 2000;
- Project finance advice to the DBSA, Investec and ABSA Corporate Bank in respect of a 600 million rand consumer water utility supply project in Nelspruit, South Africa (sponsored by the English industrial concern, Biwater plc).1999;
Group Advisor: Strategy & Investments to AMS International Ltd., the largest property development company in East Africa. Establishing a $100 million Real East Fund and setting up a pioneering Real Estate Investment Trust (REIT) to be traded on the Nairobi Stock Exchange.
Lead advisor in the development of a pioneering government retail bond issued exclusively via a mobile platform, which has now been launched in Kenya and will be utilized by the Government to raise over $200 million per year for public infrastructure development. The entity comprises a blue chip Wall Street investment bank, the largest agricultural operating company in southern Africa and a $100 million private equity firm focused on investing in food production and agribusiness sectors.
Advisor: Strategy & International Development to the Elgin Group—a leading medium to heavy steel fabrication, machining and engineering entity based in Durban, South Africa and servicing clients—sugar mills and petroleum sector—across Africa. Structuring a joint venture partnership with target sugar mills in Kenya towards building a sizeable modern workshop to localize the fabrication and machining capacity in the region.
Project finance and PPP advice to Fieldstone (Africa) Pty Limited and the Ugandan Government and the World Bank as to all regulatory, legal and project finance matters in respect of the privatisation of the Ugandan Electricity Board into three separate entities concerned with generation, transportation and distribution of electricity. 2003-2004;
Advice to the leading French engineering consultancy firm Coyné & Bellier (known since 2009 as TRACTABEL ENGIE (FRANCE) (as part of a consortium advising the African Development Bank) in respect of all regulatory, legal project finance and PPP matters relating to a feasibility study concerning a proposed hydroelectric project spanning Gambia, Senegal, Guinea, and Guinea-Bissau:2006-2007