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AFC raises $150mln maiden Sukuk and Other Private Equity News

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Tuesday, January 31, 2017 6:17 PM / AfCD | Africa Capital Digest

Actual deals were hard to come buy in Africa's private capital world last week. The main news centered around fund raisings, with a couple of notable announcements.

The biggest of the week was a debt issuance - to be precise a Sukuk issuance. Africa Finance Corporation, the multilateral finance institution,issued its maiden Sukuk, raising $150 million, handily beating its initial target of $100 million. The highest-rated ever Sukuk issuance from an Africa institution attracted approximately $230 million in orders in a sign of strong investor interest. The Murabaha Sukuk, has a three-year tenor and will mature on January 24th, 2020. Moody's has awarded the privately placed issuance an A3 senior unsecured rating. 

On the equity front, Inspired Evolution announced that it held a first close for its second fund in late December, garnering commitments totaling $90 million from development finance institutions, specialized fund-of-funds and a family office.

Evolution II, which is aiming to hit $250 million in time for its final close at the end of this year, is a 10-year closed-end fund which will make equity and equity-related investments to take significant minority or equity-control stakes in clean and sustainable development and project finance infrastructure opportunities and growth equity investments in energy and resource efficiency businesses and their supporting value chains. 

Pearl Capital Partners, the Kampala headquartered private equity firm which specializes in agriculture investments, has held a €12 million first close for Yield Uganda Investment Fund, a new Agro equity impact fund being supported by the European Union, the International Fund for Agricultural Development and Uganda's National Social Security Fund.

The fund aims to hold a second close by the end of the year, raising an additional €13 million to bring the fund's total commitments to €25 million. Pearl Capital Partners is coordinating the raise with Deloitte Uganda, and will target both private and public investors for the fund which will provide Uganda's small and medium-sized enterprises with access to capital.

In private capital deal news, Kleoss Capital-backed Real Foods has been given the green light by South Africa's Competition Commission to acquire Highveld Honey, one of the country's largest honey producers. The undisclosed deal is the latest acquisition for the multi-brand food group which was first backed in 2014 by Genesis Capital Partners and, most recently, in August 2016, when it sold Kleoss Capital a "significant minority stake" to help the company execute its acquisition strategy in the natural food industry. 

The deal was done via Kleoss Capital Find 1, a R1.2 billion generalist fund which typically looks to invest between R50 million and R150 million in established companies. 

There were a couple of interesting perspective pieces in other publications last week. Reuters reports that Africa's sovereign investment funds are offering infrastructure co-investment opportunities and guarantees to foreign investors in a bid to help close the continent's yawning infrastructure gap.

Aubrey Hruby writes about the developmental difference private equity can make in Africa. In the Financial Times, she outlines how the Africa-focused private equity community is playing a unique role in the development of the continent, enjoying a symbiotic relationship that turns economic growth into positive investment returns and boosting healthy economic development and the accompanying job creation and political stability it provides.

And finally, a company profile. Last September, London-based Atlas Merchant Capital launched its subsidiary AMC Trade Finance to tap into the opportunity that's offered by Africa's Trade Finance gap. With 32 transactions settled of closed since then and a deal pipeline in excess of $50 million, much is promising to the firm which opens the doors of its South African office this week.

As always, you can review these and other stories by scrolling down and clicking through to them below.  

Deals, Fund & Fundraising News...

Private Equity

Real Foods wins approval for Highveld Honey Acquisition // africacapitaldigest.com

Private Equity backed-Real Foods has been given the green light by South Africa's Competition Commission to acquire Highveld Honey, one of the country's largest honey producers.  The acquisition was approved, without conditions, with the Commission concluding that the deal "...is unlikely to substantially prevent or lessen competition." 

Read more...

Inspired Evolution holds $90mln first close for Fund II // africacapitaldigest.com

Inspired Evolution, the specialist investment business that focuses on investments in sustainable clean energy and resource efficiency investments across sub-Saharan Africa announced it held a first close for its second fund in late December, garnering commitments totaling $90 million from development finance institutions, specialized fund-of-funds and a family office. Read more...

Pearl Capital Partners holds €12mln close for impact fund // africacapitaldigest.com

Solar lighting and power products company d.light has raised $10.5 million in equity and grants from Norfund, Beyond the Grid and the Shell Foundation. The latest funding brings the total amount raised by the off-grid solar company in the last four months to more than $40 million.

Read more...

Debt

AFC issues $150mln maiden sukuk // africacapitaldigest.com

Africa Finance Corporation has issued it maiden Sukuk, raising $150 million and handily beating its initial target of $100 million. The highest-rated ever Sukuk issuance from an Africa institution attracted approximately $230 million in orders in a sign of strong investor interest.

Read more...

Venture Capital

South Africa's Treasury changes VC tax regime // iol.co.za

South Africa's Treasury has announced a change to the country's venture capital tax regime which should ease the ability of venture capital companies to find initial investors for their funds.


Read more...


Trends & Perspectives...

Trends

Africa's SWFs look for foreign investors to help plug infra gap // reuters.com

Africa's sovereign investment funds are offering infrastructure co-investment opportunities and guarantees to foreign investors in a bid to help close the continent's yawning infrastructure gap. A look at some of the initiatives and despite promising return potential, the challenges the sovereign wealth funds have in attracting the much-needed capital. Read more...

Perspectives

Private Equity's developmental difference in Africa // ft.com

While still maturing, the Africa-focused private equity community is playing a unique role in the development of the continent, enjoying a symbiotic relationship that turns economic growth into positive investment returns and boosting healthy economic development and the accompanying job creation and political stability it provides.

Read more...


Company Profile

Africa Merchant Capital taps Trade Finance opportunity  // africacapitaldigest.com

While the lack of trade finance available in Africa since the 2008 financial crisis is currently hampering growth in several economies, some feel the time is ripe for independent financial firms to help plug the trade finance gap. One such firm hoping to cash in on the opportunity is London-based Africa Merchant Capital which launched its subsidiary AMC Trade Finance in September last year. Read more...

JOBS

Private Equity Investment Principal for Asset Manager // caglobal.com

Based in Lagos, Nigeria

Read more...


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