In Partnership with MN-Capital, South Africa, and other Network of Investors, the following are investment Deals available to your perusal. Any of the deals provided herein will not go beyond twelve (12) weeks in execution to have access to the facility, if only your required documentations to fulfill the deals requirement is met with expediency and ultimate seriousness to close the deal with the Investor.
Below are the Brief details of the Investment product to decide as an applicants to the best of your interest.
# Investment Product Pack [IPP-01]
We have been contacted by a lender that has funding earmarked for Educational Loans in Africa.
The parameters of the funding are below:
Deal Size: $1 million up to $30 million or more
Determination of Maximum Available: Up to 50% of Equity
Maximum Tenor: 60 months (preferably with amortization) for a senior loan.
NPL and PAR30 Requirements: Less than 10%
Does the institution need to have an educational loan book already or can the funding be used to begin an educational loan program? The preference is for the financial institution to already have an education loan book. Nonetheless, the lender is open to consider institutions that don’t have a loan book and is willing to begin an education loan program. In addition to this, the lender can provide technical assistance (TA). The TA is provided to an institution for specific purposes such as (i) education finance target market research, (ii) product refinement or development of new (education) products and their testing and roll-out, (iii) training directly to private education providers to help them improve education business literacy, (iv) social performance improvement, or (v) any other determined to be beneficial to the institution.
We now have a funder that will finance Short Term Funding Transactions
Please note that the minimum transaction size is $1 million.
The Funder will fund invoices, purchase orders, inventory and companies with strong counter-parties, i.e., governments, municipalities, strong corporates bodies, etc.
MINIMUM: US$1 million or its equivalent
MAXIMUM: US$4 million or its equivalent
Interest Rate is determined on a case-by-case basis and depends on creditworthiness of the counterparty, requested term, jurisdiction, etc.
MN-Capital as the facilitator will not charge upfront fees on Short Financing but will rather charge a Success Fee of 5% of the amount raised.
We recently secured:
- $65 million for a Nigerian bank
- $45 million for a Ghanaian bank
- $45 million for a Namibian bank.
We have a financing institution that is looking to provide credit lines to African financial institutions that on-lend to clients. Details of the funding are below.
The process is for the financial institution to confirm their interest as well as their acceptance of our fees, i.e, 2% success fee, which will be deducted from the proceeds of the financing. Once we have this confirmation, the bank provides a copy of its most recent financial statements; it is critical that the financial statements show at least $25 million in equity. We will share the financial statements with the funder. If the funder expresses interest, we will look to sign an engagement letter with the bank for our fee. Once the engagement letter has been executed, we make a formal introduction to the funder, which will provide an initial offer within one week of the introduction. Once the bank and the funder agree terms, we will move to close.
- FUNDING DETAILS:
a. Private Sector Lines of Credit: $5m – $15m, depending on equity capital base of the counterparty. These are medium to long term (3-10 years) funding facilities offered for on-lending purposes to private sector projects and commercially-oriented public sector projects.
b. Trade Finance Lines of Credit: $10m – $50m, depending on capital base of the counterparty. These are short term (1 year, renewable) funding facilities offered to finance foreign trade transactions that that exclusively entail importation of goods and commodities from Arab countries to eligible Sub-Saharan African countries.
2. ELIGIBILITY CRITERIA: Minimum trading history of 3 years, must be profitable, with minimum equity capital base of $25m. Portfolio size doesn’t matter that much as long as asset quality/ NPLs ratio is within regulatory limits/ industry benchmarks.
4. PRIORITY SECTORS: The financial services sector — specifically, commercial banks and development banks. They will also consider micro-finance finance institutions and leasing companies, on case-by-case basis.
5. INTEREST RATES: Libor +4-5%.
6. COLLATERAL: For commercial & development banks they usually offer clean / unsecured facilities, provided that they are satisfied with their financials. As for other financial institutions (i.e. leasing companies, mortgage companies, microfinance companies, etc), security might be negotiated on case by case basis.
7. TENOR: Can be up to 10 years for development banks and up to 8 years for commercial banks.
8. MN-Capital will charge a 3% success fee, which will be deducted from the proceeds, for its services.
Over the past year, we have developed relationships with a significant number of MFI funders.
Below is a summary for MFI funding:
DEAL SIZE: $1 million minimum and up to $10 million maximum depending on the MFI’s equity and/or size of the loan book.
DEAL SIZE DETERMINATION: Up to 33% of Equity or Loan Book depending on the funder
NPLs: Below 8% — the lower the better
PAR30: Below 8% — the lower the better
SECTOR FOCUS: All MFIs are eligible; however, MFIs focused on SME and Agricultural lending are preferred.
- LENDING LIMITS: Private Sector Lines of Credit: $1m – $10m or local currency equivalents, depending on equity capital base. These are medium to long term (4-7 years) funding facilities offered for on-lending to SMEs. NOTE: THIS FUNDING IS AVAILABLE IN LOCAL CURRENCIES.
- GEOGRAPHICAL COVERAGE: All African countries
- ELIGIBILITY CRITERIA: Minimum trading history of 3 years, must be profitable, with minimum equity capital base of $4m. Funding up to 35% of equity.
- PRIORITY SECTORS: The financial services firms, which on-lend to SMEs
- INTEREST RATES: Libor +4-5%. NOTE THAT IF THE FUNDING IS IN LOCAL CURRENCY, THE INTEREST RATE MAY INCREASE TO COVER HEDGING COSTS.
- TENOR: Can be up to 7 years.
We have been contacted by a debt funder that is interested in providing debt to PROFITABLE, OPERATING Oil & Gas companies that need capital for expansion. The minimum deal size is $10 million and they can offer up to $50 million in financing.
PLEASE NOTE THAT THESE MUST BE OPERATING COMPANIES THAT ARE PROFITABLE AND ARE SEEKING CAPITAL TO EXPAND PRODUCTION.
Below please find a recent request from an agro-processing business focused investor:
FUNDING OFFERED: Equity
MINIMUM TRANSACTION: US$5m
MAXIMUM TRANSACTION: No maximum transaction size (but “sweet spot” is between $10 million and $30 million)
SECTOR FOCUS: Agro-processing companies.
GEOGRAPHIC FOCUS: Sub-Saharan Africa but are open to look at acquiring businesses in developed markets who source from Africa
TRANSACTION REQUIREMENTS: They typically look to acquire a controlling stake in businesses or look for a strong pathway to majority
FUNDING OFFERED: Equity
MINIMUM TRANSACTION: US$10m
MAXIMUM TRANSACTION: Up to US$30m (even more for right deal as their can offer co-invest to their partners)
SECTOR FOCUS: Financial Services including banks, MFIs, insurance companies, payment companies, mortgage companies, etc.
GEOGRAPHIC FOCUS: Africa and Asia
TRANSACTION REQUIREMENTS: They are seeking significant minority investments, i.e., 30-35% ownership in the target companies.
What to do if interested;
You could call on [+233543105144] to be guided or Visit Oak Forex Office, Frederic Bastiat Institute subsidiary at Kokomlemle, Near Joy Fm, to fill a questionnaire forms to begin the facility processing.
Direction to the office, call ; 0235600002 | 0558214414
- Alternatively, you could call the above contact number +233543105144 to be emailed the questionnaire to fill and return it to begin the required documentations
Always remember Frederic Bastiat Institute exist to empower Private sector growth in Ghana and Africa as a whole.