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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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This presentation was part of the Investing in Eastern Africa conference